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Assignment# 1: Case 11: “Great Lakes: Great Decisions”

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Assignment #1
LaTonia A. Roberson
Business Administration Capstone-BUS 499
Professor Eliopoulos
July 11, 2011

Assignment# 1: Case 11: “Great Lakes: Great Decisions” 1. Perform an analysis of the Social/Demographic, Technological, Economic,
Environmental/Geographic, and Political/Legal/Governmental segments to understand the general environment facing Great Lakes. Describe how Great Lakes will be affected by each of these external factors. Social/Demographic Segment-Ellie Shannon, the Division Manager for Great Lakes Chemical Corporation had a concern for what option was to offer regarding the continued use of lead based additives in developing countries. Even though it was not illegal to do so, Ms. Shannon considered the potential effects this decision would have on Great Lakes to compete in global markets and if it would impact the company positively or negatively as a corporate citizen. Technological Segment-Great Lakes was a company that always sought to keep up with technology and ways to make its product better. During the 1950s they focused on petroleum production and from there moved into the bromine and chemical business. Great Lakes developed chemical products for applications such as water treatments, specialty household cleaners, flame retardants, polymer stabilizers, fire suppressants, and performance chemicals. Great Lakes took on the production of lead additives and that is where they made the majority of their wealth. Economic Segment-Great Lakes made very wise decisions as far as investing in companies such as Octel Associates, a tetraethyl lead (TEL) producer, which accounted for over most of the company’s total operating profit per year. Even when the company was down they were still up because business was just that good because they made a great investment. When Ms. Shannon was trying to decide whether to discontinue the production of the lead additives to the developing countries, she had to take in consideration changes, trends and their strategic implications. Environmental/Geographic segment-Lead adversely affects the neurological system, the kidneys, and the cardiovascular system. In adults, lead exposure causes increased blood pressure, hypertension, and a higher risk of cardiovascular disease. Children are most adversely affected by lead exposure. Children between one and two years of age absorb 40 to 50 percent of ingested lead, whereas adults absorb only 10 to 15 percent of ingested lead. Factors like this must be weighed in an effort to make a sound decision regarding the well-being of people versus profits. 2. Analyze the lead additives industry in the U.S. using the Five Forces of Competition Model.
Describe the impact of each of each of the five forces on the industry and based on this analysis, determine if the industry is attractive or unattractive. The threats posed by new entrants-There are no lead additives industry in the United States therefore there are no competitors. Demand for lead additives is not increasing because of all the health risk and that is why it has been forbidden to be used in the United States. The power of suppliers-There are no suppliers’ goods of lead additives that are critical to buyers’ market place success. There is no supply of lead additives in the United States. The power of the buyers-All buyers in the United States purchase products that are safe for them and their families and by doing that shows the greater level of service that is required for safety. Product substitutes-There is currently no product substitutes available. The intensity of rivalry among competitors-There are no competitors.
This industry appears to be unattractive. 3. Describe who Great Lakes’ immediate, impending, and invisible competitors are and how
Great Lakes measures up against these competitors.
Great Lakes immediate, impending, and invisible competitors are companies that are supplying unleaded gasoline and within government guidelines. Great Lakes is a U.S. based company that is more concerned with taking a financial loss than protecting individuals from possible health issues. The competitors can simply win the less developed countries over by stating these truths and basically show their concern and introduce a safer product into their environment. Great Lakes is a good competitor but somewhere down the line they lost their ethics. 4. Describe the main capabilities of Great Lakes.
Great Lakes primarily made and sold lead additives. Great Lakes developed chemical products for applications such as water treatments, specialty household cleaners, flame retardants, polymer stabilizers, fire suppressants, and performance chemicals.

Work Cited
Freeman, R.E., Mead, J., Werhane, P., Wicks, A.C., (2008). Great Lakes: Great Decisions. 155-159.

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