...Case Brief Internal Entrepreneurship at Dow Chemical Description With the 2001 merger with Union Carbide, Dow Chemical Company became the largest chemicals and Plastics Company in the world. The merged company had sales of $27.8 billion specializing in chemical, plastic and agricultural products. Prior to the merger, growth had become a priority for Dow Chemical. In the years prior to 2000, the firm’s turnover dropped from $20 billion to $18.4 billion as the Net profit margin eroded to 7.1% from 10.3%. The e-epoxy.com venture was one of the many new growth initiatives Dow Chemical launched to bolster growth during this period. E-epoxy.com was conceived by Ian Telford to target the underserved market of small customers that are cost conscious. Evaluation EP&I Division: The epoxy business is a high margin but also highly capital-intensive business for Dow chemical. With 20% of the customers generating 80% of the division’s revenue and the cyclical nature of the epoxy market, the business is very susceptible to downturns. The concentration of revenues from a few customers would intuitively put customers in a position of strength during price negotiations; however Dow Chemical did not disclose prices charged to other customers. Dow Chemical maintained relationships with key clients by providing value added services (integrated supply chain, technical assistance, and volume rebates). The added services were necessary to differentiate Dow’s product. With highly...
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...Dow 30 Case Table of Contents 1.1 Bordered Covariance Matrix 3 1.2 Determination of Target Return 3 1.3 Solver Parameter 4 1.4 Efficient Frontier Creation 4 1.5 Asset Weights 5 1.6 Weekly Rebalancing 6 1.7 Portfolio Calculations 6 2.0 Firm Analysis: Home Depot 7 2.1 Trends 7 2.2 Analysis of current Macro-economic conditions 8 3.0 Analysis of Return & Benchmark 8 4.0 Analysis of Porter’s Five Forces 10 4.1 Intensity of Competitive Rivalry 10 4.2 Threat of entry for new competition 10 4.3 Threat of Substitutes for Product & Services 11 4.4 Supplier Power 11 4.5 Buyer Power 11 4.6 Closing Remarks 11 5.0 P/E 12 6.0 Individual Company Analysis 12 6.1 Growth ratios: 13 6.2 Gross profit margin: 13 6.3 Financial Strength: 14 6.4 Efficiency ratios: 14 6.5 Management Effectiveness: 14 7.0 Dividend Discount Model Analysis 16 7.1 Calculations 17 7.2 Methodology & Result 17 8.0 Modeling: Free Cash Flow to Firm & Free Cash Flow to Equity 18 Appendix A 22 Appendix B 25 1.0 Asset Allocation Model 1.1 Bordered Covariance Matrix The chapter 7 in class spreadsheet model was a strong foundation that helped teach the group how to find an optimum portfolio. To create our portfolio model, a bordered covariance matrix and an efficient frontier was developed to find our minimum variance portfolio in the DOW 30 trading case. A screen shot of our model developed on October the 8th, 2010 is in the...
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...This will provide a summary of the bid proposal to Dows headquarters for PBB by Vignart and Mercer, for a partially state and privately owned petro-chemical company in Bahia Blanca, Argentina. Bahia Blanca is rich in resources having access to Argentina’s largest gas basins making it an optimal location for a plant; which presents a great acquisition opportunity for Dow. The acquisition also provides Dow with exposure to the growing Ethylene and Polyethylene business in Argentina keeping them a world leader in the chemicals industry. The chemicals and plastics industry consisting of the production of ethylene and polyethylene can be very profitable. Ethylene is used to produce polyethylene; polyethylene is then used to produce plastics by manufacturers for household goods that we use every day, a few examples are the plastic gallon milk container, trash bags, and plastics for grocer foods like bread. The drivers of profitability are: size of the plant-larger plants produce more decreasing cost and impacting profits, capacity addition and reductions impact supply and demand, production cost-crackling naphtha is more expensive than cracking ethane to manufacture, global operating rate has a direct correlation with ethylene profitability. Dow has been the US leader in chemical and plastic manufacturing. Dow will have to consider prospective bidders, the quality of the manufacturing facility, uncontrollable risk like currency fluctuations and government policy impacting foreign...
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...Fudan – MIT China Lab Projects 2015 – 2016 1. Dow Corning: The customized market study & opportunity digging of China’s infrastructure construction industry for Dow Corning, China Company Information 公司信息 Name of Company/ Business Unit 公司/事业部名称 Website 网址 Address 地址 Dow Corning (China) Holding Co., Ltd. 道康宁（中国）投资有限公司 www.dowcorning.com www.dowcorning.com.cn dowcorning.tmall.com No.1077 Zhangheng Road, Zhangjiang Hi-Tech Park， Pudong District, Shanghai 201203 , P.R.C. 中国上海市浦东区，张江高科技园区，张衡路1077号，邮编： 201203 Company Background 公司背景 Established in 1943 specifically to explore and develop the potential of silicones, Dow Corning is a global leader in silicon-based technology and innovation. We are passionate about silicon technology’s versatility, its possibilities and its unique potential to help solve some of the most important challenges facing our world. Brief Introduction 公司简介 Stage of Development Through our Dow Corning® and XIAMETER® brands, we provide performance-enhancing products and solutions to meet the needs of customers in virtually every major industry and to improve the daily lives of nearly a billion of the world’s people. More than half of our annual sales are outside the United States. Dow Corning Corporation is equally owned by The Dow Chemical Company and Corning, Incorporated. Dow Corning also is the majority shareholder in Hemlock Semiconductor Group, which is comprised of several joint venture companies. Hemlock Semiconductor is a leading provider of polycrystalline...
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...Business Ethics 22 November 2011 Dow Corning and the Silicone Breast Implants The pressures society places on women’s physical appearances can and often has created a psychological weakness on many women’s state of mind and physical well-being. On average people spend in excess of seven billion dollars per year on plastic surgery. The obsession American women have come to believe is normal concerning their physical beauty drives women to plastic surgeons by the millions each year. Women like Selma Hayek, Pamela Anderson, and Dolly Parton are all in essence physical role models for the average woman. Many companies have created products that are used to enhance the female physic from the inside out. This writing will explore the lengths a company will go to in order to gain profit from women who are desperate to enhance their physical appearance. In addition, the ethical practices of a certain company that were set aside to maintain revenues and side step litigation are examined within this paper. The Dow Corning Corporation was once thought to be a stellar company in terms of its ethical business practices. The Dow Corning Corporation was established in 1897 by a Canadian Chemist named Herbert Henry Dow (Dow Corning Breast Implants, 2011). Dow Corning Corporation rapidly became one of the few major manufacturing producers that made silicone products. Considering the fact that the Dow Corning Corporation is the second largest manufacturer of chemicals in the world and the...
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...Corning Glass Company is an old company founded in the US, specifically in Massachusetts that manufactured glass, ceramic, and related materials usually on an order basis, which means it did not had a determined market other than satisfying particular demands from its customers and taking opportunities manufacturing Original Equipment for larger companies. Corning Glass was established in Corning, New York in the mid 1800s. Corning Glass’s operations were in Corning but as the company grew they opened plants and sales offices throughout the country. By 1968, most of their 40 plants were located east of the Mississippi River. Most of them were headquarters but two of their major divisions were in Corning. (Beer, M. 1983) The Electronic Products Division was one of the eight line’s division in Corning Glass Woks. Their reputation was based on their high technological capability in the invention and manufacture of glass products. Some of the products the electronic division manufacture included glass lenses for optical use, laboratory glassware, refractories in a wide variety, some products for kitchen use such PYREX, well known for many people because of the good product qualities for kitchen use. (Beer, M. 1983) When the market became more competitive its Electronics Products Division (EDP) started having some organizational problems because of the lack of growth. It all started when the profits became decreasing and in 1968 Mr. Joe Bennett took the leadership recently (in 1966)...
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...What is distinctive about Corning’s Management style? What are some of the issues for the firm’s Management practice as an “evolving network of alliance”? How have the top management teams controlled the firm with the regards to organization structure and its flexibility, autonomy of the joint venture and partnership, fit and consistency between long-range corporate strategy and daily tactical operation, communication and network among employees within and across the organization(alliances and joint ventures)? - The key factor of corning changes is corning is the technology-driven company but often unable to translate its innovation into profits, the technology industry is complex, specialized and short-lived innovation and economic recession also make the whole industry competition more aggressive. For Corning penetrate the product to market but not success due to late entry. International market explanation may also be the factor too. These make (or possibility force) corning to form the alliance. To form the alliance, corporate culture, ethic and mind set of employee in each level is vital especially for corning the team oriented and flat organization. Corning will pick the company that fit to corning strategy and provided the maximize profit to both company. Corning policy emphasis in the corporate ethic as they will not do the cherry-picking from the alliance, the strong tied between alliance management (decision maker level) make the organization move quicker and easier...
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...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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...As a manager at the Dow Chemical Company overseeing the silicon breast implant litigation, I would opt to conduct a full-scale advertising campaign focused on describing “…the benefits of silicone products. Without mentioning the breast-implant issue,” and “tell numerous heart-wrenching tales about how silicone products have saved the lives of children. “ I think this would be the most strategic way to handle this situation given the circumstances. By design, this campaign would yield many benefits for Dow Chemical’s business. First of all, this campaign would distract the general public from the negative aspects of the silicone products business and focus them on the positive aspects. I am confident that appealing to people’s emotions is truly effective and would help Dow Chemicals restore their corporate image. By providing facts about some “heart-wrenching” situation about how silicone products save numerous lives of children we would blur the negative conception about silicone products, if not completely remove it. The general public responds well to messages that have a strong emotional flow. If the advertising campaign would not be able to remove the bad perception of silicone products from the general public, it would at least impose a sense of differentiation in regards to the silicone products. By default, people associate silicone with the silicone breast implants. This advertising campaign would aim to make people associate the silicone products with something...
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...With these developments, it is obvious that conflicts between parties of different nationalities occur and liability to tax on income of foreigners especially among those engaging in trading venture. Whilst the laws affecting domicile and residence may be sufficiently settled, it is paramount for courts to pursue a detailed analysis to ascertain specific preliminary issues so as to avoid controversial rulings. Courts often handle numerous financial cases that involve what can be best described as foreign or international elements. In such cases, court must decide whether it has the jurisdiction under the Family Law Act 1975 to make a decision on such cases. In the event that it is determined that the court is invested with the jurisdiction to determine the case, the court has to consider whether there is a system of law in foreign country that also has the jurisdiction to handle the case. As it was addressed in the case Attorney General of New Zealand v Ortiz [1984] AC 1, these benefits and costs to either party if the case resolution is made in foreign country as compared with the apparent country should also be a subject of concern. [1] Legal systems in most countries around the world adopt community property regime, which takes effect at the inception of marriage or at the time of divorce. For instance, California and Massachusetts in the United States have adopted community property regimes that support equal division of assets upon divorce. However, this provision...
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...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...
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...are given. It is understandable then that we should seek out more opportunities to apply our skills and make more positive impacts within our jurisdictions. It is this general attitude that led us to get involved in investigating cold cases. How We Got Started Mark had, for several years, been consulting with our Coroner’s Division as a forensic anthropologist. During this time he came to learn that there were numerous coroners’ cases in which the identity of the decedent was unknown. These cases were kept in three-ring binders on a shelf in the Sergeant’s office. Over the years, in the course of this forensic work, we would discuss these cases and the progress that was being made on them. The conversation usually ran along the lines of us asking “any luck with that 1980 homicide victim?” and the sergeant answering “well, we’ve gotten so many new cases that I haven’t been able to even look at it yet.” This went on for a few years and through two different sergeants. One day we, as a crime analysis unit, were brainstorming about how we could broaden our “client base”, as it were. We had been successful in integrating ourselves into our Investigations Bureau and had been involved in numerous major cases. And, of course, we had always been active in producing tactical and strategic analyses for our patrol personnel. But we knew that we could be doing more, particularly given the size and responsibilities of our agency. It was during...
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...BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA2 (C33) March 2, 2015 A stakeholder is typically concerned with an organization delivering intended results and meeting its financial objectives. In general, a stakeholder can be one of two types: internal (from within an organization) or external (outside of an organization). The stakeholders in this situation are Lanie Marquez and Tim Rodriguez who are also partners in the retail distribution business and their capital contributions are as follows P500,000 and P300,000 respectively they are an internal stakeholder since they are also the owners. The total Capital of both stakeholders is P800,000 and with a monthly salary for both partners at P15,000 on the assumption that both of them will contribute to manage the business equally. Assuming that both managed the business equally the total salary for the year for Lanie and Tim are P180,000 each. They share profit and loss equally and no interest will be given on capital contributed. The problem for this situation is that Lanie is starting to get concerned with the behavior of her other partner Tim. He only manages the business 50% of the time, which will mean that his salary of P15,000 will need to decrease by also 50% since he does not manage the business equally with his partner. The business has seen a downturn in the profit outcome and for the current financial...
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...Ralph’s Grocery and United Food and Commercial Workers Union The case that I chose for the week 6 critical thinking assignment concerns Ralph’s Grocery Company, located in California. It applies to this week’s material due to the fact that the case involves unlawful suspension and discharge of an employee, as reviewed by the National Labor Relations Board. Background In May 2011, Vittorio Razi was an employee at Ralph’s Grocery and was suspended and terminated after he refused to take a drug test without first consulting with his UFCW Local 324 representative. The company (Respondent) says that on the day in question, Razi’s behavior was in question, acting nervous, anxious, agitated, and slurred speech. After a couple managers discussed the...
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... Many people wonder why their own teeth stain so easily. The enamel on your teeth and chromogens are what stains your teeth, but what exact beverage stains teeth the most? I chose this topic because I was curious to know what stains teeth the most. It affects us daily because it could rot your teeth or you can’t pick up hot chicks anymore. So what causes teeth to stain? The temperature causes teeth to expand or contract making it easier for stains. So hot and cold drinks affect that. Color in foods and beverages come from chromogens. Chromogens are intensely pigmented compounds that stick to teeth enamel. Chromogens cause a lot of trouble when they mix and react with other stain causing and stain promoting factors. Tannis may be natural or synthetic tannis is another factor that stains teeth. Tooth enamel is porous making it extremely susceptible to stains. The darker the liquid the darker the stain. There are some examples that stain teeth. Not only sodas bad but also Gatorade. Beets are bad for you also. Mostly cause they’re concentrated. Berries dark skins stain teeth. Ketchup is also really bad because of its bright red color and high levels of acid. Dark liquids and sauces you put on your foods also stain teeth. Colored candy and popsicles both contain colorants that will transfer to the teeth and embed in the porous enamel. Fruit juices, especially grape and cranberry, leave a colorful tinge on the teeth and tongue. Colored sodas instantly discolor teeth. The citric acids...
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