...Executive Summary In July 2008, Dow Chemical announced an acquisition of Rohm and Haas, a specialty chemicals producer, in an attempt to implement its new strategy of pursuing high growth businesses. The financial crisis that hit in the fall and the termination of PIC joint venture called into question Dow’s ability to finance the deal. Based on the valuation models, paying $78/share for Rohm and Haas remained a good value for Dow post financial crisis as the combined company retained its ability to generate synergies. Dow should proceed with the deal as announced to prevent costly litigations and aim for maximizing long-term shareholder value. To avoid being downgraded to junk status and incurring other concerns of financial distress, Dow should attempt to renegotiate the terms of its financing, particularly its $13 million bridge loan. Table of Contents I. The Firms…………………………………………………...…….p. 3 a. Dow Chemical b. Rohm & Haas c. Petroleum Industries Company II. The Acquisition……………………………………………..……p. 3-5 d. The Rationale e. The Valuation f. The Financing III. The Risks……………………………………………………….…p. 5 IV. The Financial Crisis……………………………………….……...p. 5-7 g. The Macroeconomy and Industry h. The Firms i. The Post-Crisis WACC j. The Post-Crisis Valuation k. The Post-Crisis Financing V. The Recommendations……………………………………………p. 7-8 l. The Options m. The Recommendations ...
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...E.I Du Pont Nemours Principles of Management MGT 212 Nathan Butterbaugh December 2011 I. Purpose/Objective Through an in depth analysis of DuPont I plan on utilizing the principles and concepts studied throughout the textbook to break down the structure and provide a tangible valuation on how management works to stimulate the future growth of the company. With a tough several years embroiled in a downturned economy, a focus will be put on how DuPont has responded and adapted through its management style and implementation of strategies to maintain profitability and realign themselves with the market. II. Introduction/ History E. I. Du Pont De Nemours was founded in 1805 and was incorporated in Wilmington Delaware in 1915. The company first produced high-grade powder used in explosives. However, by the early 1900’s, the company shifted their focus to chemicals and energy to meet escalating needs by consumers and businesses. Today, DuPont is a world leader in science and innovation across a range of disciplines, including agriculture and industrial biotechnology, chemistry, biology, materials science and manufacturing. As of December 2010, according to the annual 10-K, DuPont employs over 60,000 people, amassed revenue of 322.7 billion with profits of just over 3 billion. The company has a diversified portfolio of business segments that range from seed production to auto paint-coatings...
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...r The ‘real’ reasons behind Corporate Social Responsibility Management Summary With this thesis I would like to contribute on the on-going CSR discussion. I attempt to investigate the real motives why multinational corporations engage in corporate social responsibility activities. The debate in CSR is nowadays still focused on the link between CSR and financial performance. Research lacks real proof of this link and corporations are failing in formulating a business case. So why is it that MNCs are willing to engage in CSR activities. In the following thesis I would like to give an answer on this question. Inhoudsopgave 1. Introduction 5 1.1 Research Purpose 6 1.2 Problem Statement 6 1.3 Sub questions 7 1.4 Structure 7 2. Theory 8 2.1 Definition CSR 8 2.2 Definition Multinational Corporation (MNC) 9 2.3 Theoretical Framework (Garigga & Mele (2004)) 10 2.3.1 Instrumental theories 10 2.3.2 Political theories 12 2.3.3 Integrative theories 13 2.3.4 Ethical theories 14 2.3.5 Propositions 16 3. Methods 18 3.1 Research approach 18 4. Results 19 4.1 Instrumental motive 20 4.2 Political motive 20 4.3 Integrative motive 21 4.4 Ethical motive 22 5. Conclusion & Recommendation 24 5.1 Conclusion 24 5.2 Limitations & Recommendation 27 6. References 28 1. Introduction Corporate social responsibility is becoming more and more important for companies. The last few years there is an increase of interest from companies...
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...Potential of Brazilian plastic industry for investment Assignment 02 ECON 5100 Report Objective The main objective of the report is to assuage the potential for investment in the plastics industry in Brazil by GE. To get a better understanding, the report has been broken down into four parts – 1. Evaluation of the Brazilian plastic industry, market structure and demand 2. GE and Brazil 3. The current health of the Brazilian economy measured by the major macro economic factors 4. Strengths and Weaknesses Brazilian plastic industry The Brazilian plastics industry comprises resin manufacturers, machine manufacturers, additives suppliers, tool makers and more than 11,000 converters and plastics recyclers. The major Brazilian resin manufacturers supply a wide profile of grades of plastics resins, such as Polyethylene (LLDPE and HDPE), EVA, Polypropylene, PP compounds, PVC (flexible, rigid and compounds), Polystyrene, PET, SAN, ABS, Polycarbonate and others. Additives, master batches and other basic chemicals are also provided by a number of other raw material suppliers. The industry offers a broad range of products for the automotive, electrical, electronics, IT, packaging, medical, household appliances, agricultural and construction industries. Having a strong manufacturing base with more than 11,000 companies, the Brazilian conversion industry operates with a variety of production processes, such as injection moulding, extrusion, blow moulding, thermoforming...
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...Potential of Brazilian plastic industry for investment Assignment 02 ECON 5100 Report Objective The main objective of the report is to assuage the potential for investment in the plastics industry in Brazil by GE. To get a better understanding, the report has been broken down into four parts – 1. Evaluation of the Brazilian plastic industry, market structure and demand 2. GE and Brazil 3. The current health of the Brazilian economy measured by the major macro economic factors 4. Strengths and Weaknesses Brazilian plastic industry The Brazilian plastics industry comprises resin manufacturers, machine manufacturers, additives suppliers, tool makers and more than 11,000 converters and plastics recyclers. The major Brazilian resin manufacturers supply a wide profile of grades of plastics resins, such as Polyethylene (LLDPE and HDPE), EVA, Polypropylene, PP compounds, PVC (flexible, rigid and compounds), Polystyrene, PET, SAN, ABS, Polycarbonate and others. Additives, master batches and other basic chemicals are also provided by a number of other raw material suppliers. The industry offers a broad range of products for the automotive, electrical, electronics, IT, packaging, medical, household appliances, agricultural and construction industries. Having a strong manufacturing base with more than 11,000 companies, the Brazilian conversion industry operates with a variety of production processes, such as injection moulding, extrusion, blow moulding, thermoforming...
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...Strategic Analysis of Syngenta Jolly was a young, bright girl, studying her Bachelor of Business Administration. When she came home from college, her mind was occupied by the assignment given to her in her Business Strategy Class. She had to pick up a company of her choice and complete strategic analysis, over a period of three years, consisting of size of the organization, financial performance, operational performance, some tailored measures of performance relating to the organization’s industry, competitor analysis, strategic actions of the organization, and strategic issues faced. She thought that she would figure out what procedure to follow from her prescribed textbook ‘Strategic Management – Theory and Application,’ by Adrian Haberberg & Alison Rieple. After a certain thought, she chose Syngenta – headquartered at Basel, Switzerland. Jolly referred to the textbook and jotted down the procedure as below. Procedure for doing the Strategic Analysis: 1) Evaluate financial performance: Calculate the following quantities and analyze them and find out the trend in the last three years. Overall Sales Overall Profit Profitability ratios such as Return on Equity (ROE), Return on Assets (ROA), and Return on Capital Employed(ROCE). 2) Measure operational performance: Page 1 of 29 Calculate the following quantities; find out the trend and analyze: Operating profit Operating profit as a percentage of sales (profit margin) Sales per employee Operating profit per employee ...
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...4 111 2 3 4 5 6 7 8 9 1011 1 2 3 4 5 6 7 8 9 2011 1 2 3 4 5 6 7 8 9 30 1 2 3 4 5 6 7 8 9 40 1 2 3 4 5 6 711 8 J. International Business and Entrepreneurship Development, Vol. 3, No. 1/2, 2006 Sustaining competitive advantage in the global petrochemical industry: a Saudi Arabian perspective Salem M. Al-Ghamdi Department of Management and Marketing, King Fahd University of Petroleum and Minerals, P.O. Box 667, Dhahran 31261, Saudi Arabia E-mail: sghamdi@kfupm.edu.sa M. Sadiq Sohail* Department of Management and Marketing, King Fahd University of Petroleum and Minerals, PO Box 210, Dhahran 31261, Saudi Arabia E-mail: ssohail@kfupm.edu.sa E-mail: sadiqsohail@hotmail.com *Corresponding author Abstract: This paper analyses the competitive advantages of Saudi Arabia in the global petrochemical industry. Porter’s model is used for this purpose. Saudi Arabia, a leading producer of oil, is also the largest worldwide producer of a number of petrochemical products. Competitiveness in the global market demands an examination of comparative advantages and is the reason why Saudi Arabia is yet to succeed in the global market. This paper is an attempt to analyse the industry and to provide strategic alternatives. Keywords: petrochemical; Porter; Saudi Arabia; strategy. Reference to this paper should be made as follows: Al-Ghamdi, S.M. and Sadiq Sohail, M. (2006) ‘Sustaining competitive advantage in the global petrochemical industry: a Saudi Arabian perspective’, Journal for International...
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...September 2005 Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be an indepth discussion...
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...September 2005 Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be...
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...Insights into the Food, Beverage, and Consumer Products Industry GMA Overview of Industry Economic Impact, Financial Performance, and Trends The Grocery Manufacturers Association (GMA) represents the world’s leading branded food, beverage, and consumer products companies. Since 1908, GMA has been an advocate for its members on public policy issues and has championed initiatives to increase industrywide productivity and growth. GMA member companies employ more than 2.5 million workers in all 50 states and account for more than $680 billion in global annual sales. The association is led by a board of member company chief executives. For more information, visit the GMA website at www.gmabrands.com The Food Products Association (FPA) is the largest trade association serving the food and beverage industry in the United States and worldwide. FPA’s laboratory centers, scientists, and professional staff provide technical and regulatory assistance to member companies and represent the food industry on scientific and public policy issues involving food safety, food security, nutrition, consumer affairs, and international trade. For more information, visit FPA’s website at www.fpa-food.org The member firms of the PricewaterhouseCoopers network (www.pwc.com) provide industry-focused assurance, tax, and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries across our network work collaboratively...
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...September 2005 Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be an indepth discussion...
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...J A N U A R Y 2 014 Next-shoring: A CEO’s guide Katy George, Sree Ramaswamy, and Lou Rassey Proximity to demand and innovative supply ecosystems will trump labor costs as technology transforms operations in the years ahead. The problem Demand for manufactured goods in emerging markets is surging and fragmenting as factor costs shift; technological advances, such as more powerful robotics and the Internet of Things, are creating a range of new opportunities for manufacturers to digitize operations. Why it matters Manufacturing strategies built on labor-cost arbitrage are becoming outmoded; the race is on to get ahead of what comes next. What to do about it Place greater emphasis on proximity to both demand and innovation while: • Making location decisions that balance economies of scale against the growing diversity of tastes within and across global markets Building supplier ecosystems that combine technical expertise with local domain and market knowledge Developing the people and skills needed to make the most of technological advances across the organization • • © Bruno Ehrs/Corbis 2 When offshoring entered the popular lexicon, in the 1990s, it became shorthand for efforts to arbitrage labor costs by using lowerwage workers in developing nations. But savvy manufacturing leaders saw it as more: a decisive change in globalization, made possible by a wave of liberalization in countries such as China and India, a steady improvement in the capabilities...
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...Growth Commitment Results 20 13 Impact Partners DATA B OO K DuPont Investor Relations Contents 1 2 DuPont Overview Corporate Financial Data Consolidated Income Statements Consolidated Balance Sheets Consolidated Statements of Cash Flows Selected Additional Data 6 DuPont Science & Technology 8 Business Segments Agriculture Electronics & Communications Industrial Biosciences Nutrition & Health Performance Materials Safety & Protection Performance Chemicals 22 Corporate Financial Data Segment Information Selected Additional Data Inside Back Cover Board of Directors and DuPont Leadership Individual Shareholder Relations: (302) 774-3033 Main Office Number: (302) 774-4994 Internet: www.dupont.com The DuPont DATA BOOK has been prepared to assist financial analysts, portfolio managers and others in understanding and evaluating the company. This book presents graphics, tabular and other statistical data about the consolidated company and its business segments. Forward-Looking Statements This DATA BOOK contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “estimates” or other words of similar meaning. Although they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of risks, uncertainties, and assumptions. Some of which include: fluctuations in energy and raw material prices; failure to develop and market new products...
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...Abstract Businesses today face heightened expectations around their role in society and the world, with turning a profit only one of many criteria by which performance is measured. Rising in importance is the impact a company has on its stakeholders, society, and even the planet. Integrated reporting, which encompasses elements of traditional financial reporting, sustainability reporting, and governance reporting within a single presentation, represents a growing trend that reflects these new expectations. The core concept underlying the term “integrated reporting” is providing one report that fully integrates a company’s financial and non-financial (including environmental, social, governance and intangibles) information. Integrated reporting offers the opportunity to centre business reporting on strategy and value creation, to demonstrate how the business uses capital and the extent to which they should continue to be invested in business. Integrated reporting is a journey. Organizations are unlikely to achieve perfection in the first year. In the absence of a generally accepted framework, companies that wish to move toward integrated reporting may encounter several dilemmas around relevance, scope, assurance and other issues. However, as reporting processes for the production of the supporting information are designed and improved and as the executive team begins to benefit from a more informed implementation of the governing structures’ decision, reporting will improve...
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...2. Oil and gas sector This chapter begins with an overview of the oil and gas industry in Malaysia. Description of the value chain of the industry is given in section 2.2, followed by the industry’s economic performance in section 2.3. Section 2.4 focuses on the scope of the inquiry regarding issues in the oil and gas industry. 2.1 Oil and gas industry in Malaysia This section provides an overview of the oil and gas industry in Malaysia. 2.1.1 History Oil and gas production have been a mainstay of Malaysia’s growth since oil was first drilled in 1910 in Miri, Sarawak. The first oil well (known as The Grand Old Lady) which was discovered by Shell, started with a production of 83 barrels per day (bbls/d) and reached a maximum of 15,000 bbls/d in 1929. There were no other drilling activities elsewhere in Borneo or Peninsular Malaya until the 1950s. [1, 2, 3] Petroleum activities began increasing significantly in 1960s due to the discovery and development of offshore fields in Borneo. The late 1960s saw the beginning of offshore oil exploration in the east coast of Peninsular Malaysia. In the 1970s, some oil fields in Malaysia were producing 90,000 to 99,000 bbls/d. [2] In the early days, foreign oil companies dominated the oil and gas industry in Malaysia with Shell and Esso being the two major players. This was followed by several other foreign companies such as Conoco, Mobil, Aquitaine, Oceanic and Teiseki. The national company, Petronas came on to the scene in...
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