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Strategy: Managing Competitive Advantage 2nd Half – Spring 2013/2014

Write Up 2
“Kent Chemical: Organizing for
International Growth”

Sara Alves Ribeiro Goulão
Nº1937
On the “Kent Chemical: Organizing for International Growth” case you assume the role of the consultant reporting on what is going on in the company as a previous step to assess the assignment that they have given you. Please, answer the following questions:
a) What were the problems facing Luis Morales as he began implementing Ben Fisher’s international expansion strategy?
Kent Chemical Product’s result show that 35% of its sales are from overseas operations and these international activities seem to be a potential source to increment sales. Due to these facts, Ben Fisher, the firm’s CEO, decided to design and implement a strategic approach to successfully expand the organization’s operation internationally. To implement this “vision of a global integrated company”, Fisher hired Luis Morales. Morales knew he had to organize the company for international growth. However, he assumed that the new strategy would fit perfectly with the organization structure, which did not since several problems started arising after the implementation.
In the first place, as a strategic issue, there was some competition between subsidiaries, which arose from both long competitive history and long history of interdependence. So, Kent Chemical International’s subsidiaries ended up tackling the same market and managers turned out to protect its own interest instead of the company’s interests as a whole. In other words, subsidiaries did not cooperate.
Moreover, the subsidiaries felt that the financial targets they had to meet were not reachable. A company cannot deal with all its subsidiaries the same way because, for example, some operate in different markets, which present distinct

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