...integrated oil and energy company, previously acquired through an M&A deal of $7.8 billion. In fact DuPont decided to move the company from its traditional energy and chemical businesses towards life science (agriculture, biotechnology, pharmaceutical) in a major operation of refocus on the core business. What became clear to DuPont shareholders was that they were not benefiting from being either a special chemical company, life science company or oil company: the price-earning multiple of the entire company was less than any of its representative sectors. Initially, the strategy of the new CEO was to increase share price through the division of the company in three sectors, of which life science represented the one most heavily funded. However, while company share price was predicted to rise to $90, it fell to $60. For these reasons it was opted for a divestiture through a split-off: DuPont would allow to trade each DuPont stock for 2.95 Conoco stocks, up to a total of 148 million DuPont shares. Once the deal was announced, DuPont shares soared 11% at an all-time high of $79.50 per share The strategy would have been executed first through an IPO carve out, then a split off FIRST STAGE: ROLE OF THE IPO The strategy implied an initial IPO stage for various purposes: first of all, it would allow to raise money in order to repay debt and other intercompany notes with DuPont, plus giving Conoco the possibility to pay a $7.5bn dividend to the parent company. Secondly, trading...
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...Morris March 10, 2014 MGT499-80 Strategic Management Project Interim Assignment #1 History and Description of the Company The E.I. du Pont de Nemours and Company (DuPont) was founded in 1802 by Eleuthère Irénée (E.I.) du Pont. E.I was trained in gunpowder handling as well as advance explosive production techniques (DuPont). E.I. left his home in France during the French Revolution to embark on a journey to America January of 1800. By the summer of 1802 DuPont opened up his first powder mill located on the Brandywine River. Since that very first mill opened the DuPont Company has been involved in a wide variety of industries; The Automotive, Research and Development, Technology, Communication industries and a whole host of others have all been ventured into by DuPont. DuPont currently is one of the most profitable chemical companies in the world. In 2012 DuPont ranked ninth in the world based on ICIS Top 100 (ICIS). Mission and Vision Statement DuPont’s mission statement is as followed: “DuPont is a science company. We work collaboratively to find sustainable, innovative, market-driven solutions to solve some of the world’s biggest challenges, making lives better, safer, and healthier for people everywhere.” The challenges that DuPont narrows its focuses on are food, energy, and protection solutions (DuPont.) Primary Industry SIC: 2879, Pesticides and Agricultural Chemicals, NEC NAICS: 325320, Pesticide and Other Agricultural Chemical Manufacturing “This industry...
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...brands of seeds, insecticides, fungicides, herbicides, insect control products, and plant growth regulators. Acquisition and Selling of Conoco Our recommendation: Our recommendation is based on the performance of the division called Conoco which was the chief operating division adopted by the company in 1980s. As per our recommendation DuPont should divest in Conoco in a phased manner so that company can be free of non performing unit. Between 1940 and 1980, DuPont developed and marketed technologies such as Dacron, Mylar, Lycra, Kevlar, Tyvek, and Nomex. The company also expanded its pharmaceuticals and medical products business. The company acquired Conoco, an energy supplier, in 1981. In 1991, DuPont's pharmaceutical business entered into a joint venture (JV) with Merck, to focus on non-US markets. During the 1990s, the company acquired Protein Technologies International, a producer of soy protein products and Imperial Chemical's polyester-resins, a company with intermediates and polyester-films operations. In 1998, the company bought Merck's share of the pharmaceutical JV and renamed the company, DuPont Pharmaceuticals. Later that year, DuPont started selling its interests in Conoco which was completed in 1999. Conoco facility can be classified as cost center. It is one of the main cost centers of the company and hence the most resources are hogged up at this center. One needs to identify resources properly at this center so that we can classify it properly and manage it...
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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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...Claudia S. Silva A01139056 Case. DuPont Kevlar Aramid Fiber Industrial. The DuPont’s major core has been the creation and innovation of fibers for several uses, such as Lycra spandex fiber, diverse polyester forms, Nomex Aramid fiber and Qiana nylon. The invention of Kevlar brought a new market cluster for DuPont to develop, and that one is the tire and aerospace industries. The important assumptions to have in consideration before making a decision is to first know who your market target is, who your competition is, and the pros and cons to start to develop a niche in this industry, for that I mean, what would be the production cost and what would be the selling cost, knowing those data, you can estimate the profit for a certain period, and with that, you can know if its profitable to start in this area. It’s important to understand, before starting a business to have the whole thing strategically planned. To have a good innovation starting I would say you need to try to develop in a market pull instead of technology push. With this, is easier to get your technology out there and sell it for sure, because the market is already there waiting for something to solve their problems. Returning to the part of “to have to whole thing strategically planned”, it is needed to be said that, part of that plan is to know who your market is, as it was said before. Being a fiber product, in the first line of costumers, it can be said that the market attended would be car’s business (for...
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...work. Conoco’s products range from crude oil, natural gas and natural gas liquids to refined products, such as motor oil, other lubricants and petroleum coke. The company is committed to protecting the health and safety of everyone who plays a part in their operations, lives in the communities in which they operate or uses their products. Wherever they operate, Conoco intends to conduct business with respect and care for both the local and global environment and systematically manage risks to drive sustainable business growth. Conoco is not satisfied until it succeeds in eliminating all injuries, occupational illnesses, unsafe practices and incidents of environmental harm from their activities. Solution In 1998, with the help of DuPont, the goal of zero incidents became reality for the 425 employees of ConocoPhillips Limited in the U.K. Not only had there been zero lost-time incidents, but zero days of restricted activity and zero medical treatment cases. In other words, the total recordable rate was 0.00. This safety record was the result of focusing on a number of basic principles: • All injuries and occupational illnesses can be prevented. • People are the most important element in an effective safety program. • All employees are responsible for their own safety and for the safety of their colleagues. • The entire management line has a special responsibility for preventing injuries. ® CONOCO The Conoco approach to safety focused...
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...1978. In 1983 she received her master’s degree in Management from Kellogg school of management. Here is how she reached the top: as a Sales Rep at Westinghouse where she discovered her passion for business and as a Management Trainee at General Electric. She joined DuPont as a Marketing Manager in 1988 where she quickly moved up the corporate ladder and ultimately became the first female CEO of the 210 year old organization in January 1, 2009. Away from work, she married and had three children. Ms. Kullman travels the world to promote face to face relationships with her enormous corporate team but believes her own family is the most important. She is the 19th executive to lead the company founded in 1802. Prior to becoming CEO, Ms. Kullman was president of the company from Oct. 1 through Dec. 31, 2008. In 2012, she ranked number five in Fortune 500’s list of Most Powerful Women. Though DuPont is known for its dominance in chemicals, since becoming CEO Ms. Kullman has pushed the 210 year old company into unexpected new businesses (World of CEOs Dossiers, 2012). Analyze the CEO’s leadership style and philosophy, and how the CEO’s leadership style aligns with the culture. “Inclusive Innovation”, describes DuPont CEO’s leadership style and philosophy. It is a concept which she encourages and applies...
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...University MBA-520-X3289 Accounting & Fin. Analysis 16TW3 Dr. Christine Oji March 26, 2016 DuPont's Financial Health Checkup As a newly-hired manager at a DuPont, my first task is to review the company’s past and current financial performance and health to begin planning for the upcoming year. My report will include several financial tables, along with a comprehensive narrative describing the organization’s context, financial performance, and health. Organizational Context For two hundred years, DuPont has followed its set of core values. Safety and health are priorities, and in the 90 countries that DuPont services its industry customers, there is a broad range of products that are offered (DuPont, 2016). DuPont is considered a Science Company. The Security and Exchange Commission Standard Industry Classification is Plastic Material, Synthetic Resin/ Rubber, Cellulos (No Glass). In this SIC, there are a handful of companies, overall lowering competition in this field. Appendix I highlights the Industries, the Products/Services, and the vast geographical area of DuPont’s reach. DuPont is inclusive of ten businesses. The six Business Segments are reported as Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition & Health, Performance Materials and Safety & Protection (DuPont, 2016, p.4). Agriculture’s segment performance depends on the weather to cooperative with the growing seasons. If the season hits the crops hard, the sales price...
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...Introduction: Many of today’s greatest inventions have been created by “accident” , meaning that these products were created in the midst of a scientist trying to make something else. Three of these products, two of which were staples during many of our childhoods, are things we could not imagine a time without them. The “accidents” we will be focusing on are nylon (yes, the material panty hose are made of), Silly Putty®, and the bouncy ball. Nylon Nylon, a synthetic polymer fiber, was invented by Wallace Hume Carothers at the E.I. DuPont de Nemours Company in Delaware in 1934. Nylon stockings became a huge hit as soon as they were released during World War II after a public supply cut-off. Although Carothers receives recognition for the creation of the polymer, another DuPont employee may the actual inventor. Julian Hill worked with Carothers, and had spent time developing a process where a long fiber with a silky texture could be created of carbon polymers. Carothers may have had a psychological issue, and committed suicide in 1937. The company accredited the invention of nylon to him in honor of him. Nylon was created entirely from petrochemicals unlike previous artificial fabrics like rayon and acetate, which were plant based. Nylon was designed as a synthetic silk for women’s stockings. The material was intended to be less expensive while adding qualities such as strength and insulation. Nylon is not only used in stockings, but is also used in an enormous amount...
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...DuPont Performance Coatings Case By Jake Greenstein and Andrew Rubenstein October 28, 2015 Introduction In January 2012, Ellen Kullman, CEO and chairman of DuPont, had to decide on the future of DuPont Performance Coatings (“DPC”), a division of DuPont that produced paint for the auto and trucking industries. From the beginning of Kullman’s term as CEO in January 2009, she sought to transition the Company from an economically struggling commodity chemical business (with a 2009 stock price below $19) to a specialty chemical and science-driven business (Exhibit ). Kullman believed DuPont was best positioned for a future at the core of industrial biotechnology by competing in agriculture, nutrition, and advanced materials, areas with larger growth potential and higher margins. With expected revenue growth of 3-5% coupled with expected operating margins of a mere 10-12%, DPC must outperform in order to fit Kullman’s strategic initiative. Overall, Kullman needed to determine whether or not to divest DPC through an auction process and to whom she should sell the division. DuPont Performance Coatings Overview Created in March 1999 through the merger of Herberts GmbH and Dupont Automotive Finishes, DPC produces paint for the auto and trucking industries. DPC’s products included high-performance liquid and powder coatings for motor vehicle original equipment manufacturers (“OEMs”), motor vehicle aftermarket, and general industrial applications. DPC generated 11% of DuPont’s total...
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...Performance Indicators and Performance Indicator Systems: „ Performance indicator systems are well suited to evaluate the performance of a company. Please, explain what performance indicators and performance indicators systems are and comment on the initial statement. “ Performance Indicators and Performance Indicator Systems 2 Performance Indicators and Performance Indicator Systems 1. Introduction As evaluation and optimization of processes becomes more and more important in todays globalizing economy, companies are in need of tools to evaluate and optimize their performance because as Robbins & Coulter stated: „what does not get measured does not improve.“ (Robbins & Coulter, 2009). To do so organizations use performance indicators and performance indicator systems which are used to evaluate its relative success. This relative success can vary from making progress towards a strategic goal to achieving an operational goal like customer satisfaction. With this said it is clear that these performance indicators are often associated with performance improvements and are most important to the controlling department of an organization to investigate the accomplishments and efficiency of separate projects, departments or even the whole organization. In this essay I will explain and define these performance indicators and performance indicator systems as well as determine if performance indicator systems are well suited to evaluate the performance of a company. 2. Performance...
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...DUPONT ABSTRACT Our team has been asked to look at DuPont and how its different foreign operations can have an impact on the firms overall profit. The team will first talk about how DuPont has many different subsidiaries all over the globe. The paper will also talk about two different subsidiaries and how they contribute to DuPont’s profits. Each of the subsidiaries of DuPont will affect its profits in a different way because of the foreign currency rates. The team also has gone and looked at what the company does to help hedge against the exchange rate risk they may face. The last thing that our team will be discussing on how an increase or even a decrease in the Dollars exchange value form all of its global subsidiaries may impact DuPont’s profitability. DUPONT Our team has been asked to look at DuPont and how being a Multinational enterprise may affect the company’s profits. Companies all over the world need to look at the foreign exchange rate risks that they may come across. There are many places around the world where their currency is not the same as the U.S. Dollar. DuPont has been around for over 200 years and has been able to bring world class science and engineering to the global market. They have been able to do so thru their innovate products, materials and services. DuPont is very market driven with their innovations and over the years have been able to introduce many new products along with many different patent applications every year...
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...DuPont Leadership Influence DuPont problems relate to the organizations employee safety and the environment, Intersect Investments problems for the organizations relates to profit loss and customer dissatisfaction. The leadership of both originations has to find a solution to become more popular in the public eye. Leadership is defined as “a social influence process in which the leaders seek the voluntary participation of subordinates in an effect to reach organizational goals” (Kreitner & Kinicki, 2003, p. 595). DuPont’s leaders in the past have participated in the leadership roles of some unethical tactics regarding the safety of employees. DuPont in the past has had “a miserable environmental health and safety record, and in the past has frequently run afoul of occupational safety laws and has deliberately concealed medical records identifying that several workers were suffering from illness related to asbestos exposure” (Corporate Watch, 2002, p. 2.) Being fine thousands and thousands of dollars by the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA), the company has implemented training programs for the leaders and managers to ensure the safety of employees. Unclear Goals and Miscommunication DuPont over the years have been fined for the pollution of the environment by the EPA and OSHA for chemical spills, lack of employee safety and pollution. DuPont has spent millions of dollars in campaign advertisements...
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...Assane DIOUF MBA-Bronx Campus MG- 800 Case 4 : WL Gore Introduction W.L. Gore started as a small company in their basement and has grown into a giant manufacturer with the company’s products being used globally in almost all sectors, including automotive, aerospace, chemical processing, electronic, manufacturing, healthcare, military, and textile industries. W. L Gore and Associates is best known around the world for producing high performance fabrics, medical products and electronics using polytetrafluorethylene; an artificial fiber referred to as PTFE. The company was founded by Wilbert L. Gore (Bill) and Genevieve Gore in 1958 after Bill left his job at DuPont. Today, W.L. Gore with the guidance of the Gore Family is renowned for not only the products that they produce, but also for their unique culture and design that has set the pace for which others such as Google try to emulate Swot The first and most apparent strength of the W.L. Gore company is its diversity of products. The company is able to market to a variety of industries on a global level, including electronics, medical industry, IT, aeronautics, and telecommunications. This diversity affords the company some protection financially should there be any negativity in a given market segment. Another important strength of the company is its strong growth and financial performance over the long-term. According to the information presented, it has been profitable for 37 years and has consistently ranked...
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...MIS Case Studies Case 1 SystemX Inc. Withdraws Rs. 1 Billion SoftGuide Acquisition Offer The following is an excerpt from a news article in the Daily Update, March 07, 2010 “SystemX Inc., called off its acquisition of SoftGuide Knowledge Consultants, Friday, saying that 1 Billion was too high a price.” (SoftGuide has a considerable market share in Training and Development services and would therefore help SystemX to diversify and expand its range of services to customers.) “Although SystemX officials would not comment further, several observers said that problems discovered at SoftGuide probably lay behind the decision…. The article said that SystemX feared that SoftGuide’s data-processing system was inadequate to handle the new products planned for the SoftGuide sales staff. SystemX officials were also concerned about the 30 percent annual turnover among sales personnel… Tabrez A., SoftGuide CEO, responded that the SoftGuide’s data-processing was quite competent and has absorbed at least one new product a month for two years.” Questions: a. Why should SystemX be so concerned about the capabilities of SoftGuide’s data-processing? b. What competitive advantages to a Training and Consultancy services company may be provided by an information system? Case 2 Professor Challenges Basic Assumption about Planning and Control Professor A. Van Cauwenbergh of Antwerp University, in a paper presented at the Tenth Anniversary Conference of the European Institute for Advanced Studies...
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