...Corning Inc. To: From: Subject: Recommendations for the three proposals Corning Inc.’s strategy – to compete in four worldwide business sectors (communications, laboratory sciences, consumer housewares, and specialty materials) and to deliver long-range superior economic benefits to its employees, consumers, communities, and shareholders – has served the organization well for over three decades as evidenced by a transformed business portfolio, record earnings, and the emergence of a new spirit within the organization. However, due to diverse changes in trends that characterize the industry’s landscape, there is the need to come up with innovative proposals that originate from diverse business sectors. The CEO of Corning Inc. hopes that these proposals would aid in the company’s continual growth. These proposals deal with (a) the laboratory sciences, (b) communication (fiber optics), and (c), the television glass division. The opinions given are a result of a comprehensive deduction of the Porter’s Five Forces model so as to identify the best paths of actions to achieve a proper competitive advantage in the industry. For the first proposal, I think it is vital that Corning maintains its relationship with Ciba Geigy. Ciba Geigy has portrayed a strong commitment to the partnership’s success as evidenced by its willingness to preserve with significantly low returns over the next few years as the venture continues to grow. Furthermore, it has a good strategic fit with Corning Inc...
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...science products, performance materials and industrial chemicals. DSM develops, produces and markets innovative products and services that are designed to raise the quality of life. DSM’s products are used in a wide range of end-use markets and applications, including human and animal nutrition and health, cosmetics, pharmaceuticals, the automotive industry, coatings, the construction industry and the electrics & electronics market. DSM has annual sales of around € 8 billion, a net profit of around € 262 million and employs about 23,000 people worldwide. DSM is a leading world player in many of the markets in which it operates and has plants and facilities on every continent. The company’s head office is in the Netherlands. Over the last decades, DSM has shifted from being a bulk chemical producing company to a company that produces more specialized chemicals and life-science products. DSM Food Specialties: Food Specialties is one of DSM’s 14 divisions. It is a leading producer of value-added ingredient solutions. With 1,300 employees active in 28 locations worldwide, DSM Food Specialties is a truly global player. It has a knowledge-intensive base, founded on two main technologies - fermentation and enzyme technology. Food Specialties’ mission is to exploit this base to research, develop, manufacture and supply effective ingredient-based solutions for the international food, feed and beverage industries. Food Specialties is a B2B-company. In doing this, it aims to be recognized...
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... The selection of the preferred vehicles (channels and processes) to deliver defined products/services to specific customers to create the highest value for the enterprise. August 2003 Elemica Global Conference Connect Once – Connect To All 2 Objectives • Industry Context • Channel Management • Channel Strategy Development • Lessons Learned August 2003 Elemica Global Conference Connect Once – Connect To All 3 Chemical Industry Valuations: Three evolutions of relative performance 2.0 High Growth Expectations Structural Revaluation Post Oil-shock Cyclical Performance Within S&P 500 Basis Discount to S&P 500 1.5 P/E Index 1.0 0.5 0.0 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 Overall Commodity Specialty S&P 500 August 2003 Elemica Global Conference Connect Once – Connect To All 4 Source: Value Line®; S&P Analyst Handbook Chemical Industry Valuations: Three evolutions of relative performance 2.0 High Growth Expectations Structural Revaluation Post Oil-shock Cyclical Performance Within S&P 500 Basis Discount to S&P 500 1.5 P/E Index 1.0 0.5 0.0 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 Overall Commodities Average Annual Sales Growth 1970’s 1980’s 1990’s Commodity Specialty Specialties Average Annual Sales Growth S&P 500 1970’s 1980’s 1990’s 13% 5% ...
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...Nabila Suayd Gold 131039 November 17th, 2015. CASE WRITE UP “KENT CHEMICAL: ORGANIZING FOR INTERNATIONAL GROWTH” INTRODUCTION Kent was established in 1917 as a rubber producer, established its corporate headquarters just outside of Akron, Ohio in a small town called Kent. Kent became a leading global specialty-chemical company when it chose to diversify into additives and other specialty chemicals, developing these products within their own research laboratory in 1953. Kent Chemical Products has grown throughout the years from its core domestic business to an international operation struggling to fully integrate globally. PROBLEM STATEMENT In 1998, CEO Ben Fisher decided global expansion would be Kent’s top priority stating, “Our goal is to remake Kent from a U.S. company dabbling in international markets to one that develops, manufactures, and sells worldwide”. This goal proved to be more difficult than first anticipated, when after two reorganizations Kent’s Chemical International president Luis Morales had not yet been able to align the international side of the business with the core domestic side. ANALYSIS 1. What were the problems facing Luis Morales as he began implementing Ben Fisher’s international expansion strategy? Morales began implementing the global integration strategy by taking majority interests in Kent´s offshore JV´s, acquiring other overseas companies, and generally expanding global presence. As overseas operations grew, Morales...
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...McKinsey on Chemicals Number 3, Winter 2011 4 22 40 Chemicals’ changing competitive landscape Innovation in chemicals: An interview with Dow Corning’s Stephanie Burns and Gregg Zank Improving pricing and sales execution in chemicals 10 32 46 A capital-markets perspective on chemical-industry performance Capturing the lean energy opportunity in chemical manufacturing Kick-starting organic growth McKinsey on Chemicals is written Editorial Board: Florian Budde, Copyright © 2011 McKinsey & Company. by consultants in McKinsey’s global Philip Eykerman, Bob Frei, All rights reserved. chemicals practice together David Hunter, Tomas Koch, John Warner This publication is not intended to be with other McKinsey colleagues. Editor: David Hunter used as the basis for trading in the shares of any company or for undertaking This publication offers readers insights into value-creating strategies Art Direction: Veronica Belsuzarri, any other complex or significant financial and how to translate these Shoili Kanungo transaction without consulting strategies into company performance. Design Direction: Veronica Belsuzarri appropriate professional advisers. Design and Layout: Shoili Kanungo To send comments, request Editorial Production: Elizabeth No part of this publication may be copies, or to request permission to Brown, Heather Byer, Nadia Davis, copied or redistributed...
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...In this assignment the leaner will identify specialty that fits for her geographic area, and identify the level of intensity and the promotional strategy utilized to promote the product. The learner will be utilizing information obtained from lectures on technology research, promotional strategies, and distribution intensities. Identify a specialty that fits for your geographic area and justify your selection. “Cancer is defined as the uncontrolled growth of abnormal cells in the body. Cancer appears to occur when the growth of cells in the body is out of control and cells divide too quickly. There’re numerous forms of cancer, it can develop on any organ or tissue in the body, such as lungs, colon, or breast, skin, bones or nerve tissue. Drinking excessive alcohol, or obesity, Benzene and other chemicals are some causes of cancer. The most common forms of cancer for both sexes are colon and lung cancer. Most cancers are diagnosed by biopsy. Treatments are based on the stage and type of cancer.” According to State Center for Health Statistics, North Carolina (2009), Forsyth County was ranked number one for the leading cause of mortality at 24.1%. As the Vice President of Marketing implementing a specialization in cancer could possibly reduce the death rate and increase profit margin for the hospital. Indicate what level of intensity would promote this transition effectively, keeping in mind those physicians, employees, and consumers who will be affected by the change provide...
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...Executive Summary: On January, 1998, the Senior Executives of DuPont are considering possible divesture of Conoco. Based on financial analysis and economics data analysis, I propose that divest 40% shares and keep the mainly control of Conoco. We believe that divesting Conoco from DuPont will: - permit DuPont to expand its life sciences business, while at the same time allowing Conoco to pursue its investment program in new and capital-intensive oil and gas projects; - facilitate future partnerships, combinations and other arrangements between Conoco and other entities in the oil and gas business; - allow each company to offer incentives to its employees that are more closely linked to its performance; - permit each company to focus its managerial and financial resources on the growth of its business (2) And we also believe that by controlling Conoco, DuPont will: - benefit from the cost of control, promote competitive in other market which need to use crude oil as its raw material. - gain from the increasing price in crude oil in future cause the resources is nonrenewal. Thus, based on financial and economics perspectives, DuPont need to divest 40% of Conoco and keep control the rest of it. Analysis Ladies and gentlemen shareholders, Chairman, Director and Managers, It is a great pleasure to greet you all once again on behalf of the managers of DuPont, and welcome you to our shareholders’ meeting. Today, I have a big decision to announce...
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...20 years ago, Arimount has grown to become the top national retailer providing all things beauty. Arimount offers more than 20,000 products from over 500 well-established and emerging beauty brands across all categories and price points. Arimount the largest beauty and grooming retailer that provides one-stop shopping for prestige, mass and salon products and salon services in the United States. We focus on providing affordable indulgence to our customers by combining unmatched product breadth, value and convenience with the distinctive environment and experience of a specialty retailer. Arimount is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services. We focus on providing affordable indulgence to our customers by combining unmatched product breadth, value and convenience with the distinctive environment and experience of a specialty retailer. Arimount customers can satisfy all of their beauty needs in one place. We offer a unique combination of thousands of prestige and mass beauty products organized by category in a bright, open store environment. The beauty products are arranged in self-service displays and full-service boutiques in a way that encourages our guests to enjoy discovering new products and services. We believe we offer the widest selection of categories across prestige and mass cosmetics, fragrance, hair care, skin care, bath and body products and salon styling tools. We also offer...
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...Branded Pharmaceutical Manufacture: Pharmaceuticals manufactures develop prescription and over the counter products that are used to prevent or treat illnesses in humans and animals. BRAND name drugs or manufactures are those medications that have patent protection. So once the product has been approved, branded manufactures generally purchases bulk chemicals or biological products and manufacture the product, which is then formed and filled into packages and distribute to centralize sales distribution offices or ware houses. For example, Belsomra, Ambien, Lunesta etc Generic Manufacture: Generic drugs are produced and distributed without patent protection, and industry operators are not significantly engaged in the research and development of new drugs. A generic drug is defined as “ a drug product that is comparable to a brand/reference listed drug product in dosage form, strength, quality and performance characteristics and intended use.” Although the distribution process is the same, the design of the channel may be substantial different comparing to branded drugs. For example, an increasing numbers of generic manufactures are locating and forming partnerships with Indian and Chinese manufactures. Generic drugs have no patent, which lead to lower prices and lower margins. Drug example Zolpidem Wholesaler: Pharmaceutical wholesalers act as middlemen for retail drugstores. They stock brand name drugs, generic drugs and sundry items to sell to retail, hospital and...
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...Veterans, No. 14-144 LEGAL QUESTION Do the messages and symbols on state-issued specialty license plates qualify as government speech immune from any requirement of viewpoint neutrality and has Texas engaged in viewpoint discrimination by rejecting the license-plate design proposed by the Sons of Confederate Veterans? FACTS Texas provides drivers with the opportunity to purchase and utilize specialty license plates. One possible method for the creation of a specialty license plate is if the Texas Department of Motor Vehicles Board (“Board”), by the Board’s initiative or after an application filed by a nonprofit organization, issues a new specialty license plate. See id. If a nonprofit files an application for a new specialty license plate, the plate will only be issued if the design gains the Board’s approval. The Board has the authority to “refuse to create a new specialty license plate if the design might be offensive to any member of the public.” The Texas Division of the Sons of Confederate Veterans (“SCV”) is a nonprofit organization dedicated to preserving the memory and reputation of confederate Civil War veterans. On August 2009, SCV applied for a specialty license plate featuring a logo of the confederate battle flag. Thereafter, the Texas Department of Transportation (“TxDOT”) submitted the application for a vote to its seven-member panel. The TxDOT, responsible for approving specialty license plates in 2009, voted two different times on SCV’s application and ultimately...
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...I: Dixon Corporation’s problem In October 1979, Dixon Corporation (Dixon), a specialty chemical company in US, is considering the purchase of a sodium chlorate plant located in Collinsville, Alabama. The Collinsville plant is now managed by American Chemical Corporation (American), one of largest diversified chemical companies in US. Acquisition of the Collinsville plant fit well with Dixon’s strategy of supplying chemicals to paper and pulp industry. Dixon and American had reached an agreement of $12 million purchase price to acquire the Collinsville plant’s net asset. As a part of the deal, American would give Dixon an ongoing technical support of the laminate technology, a new technology developed by American to reduce the power cost by 15% to 20% and eliminate graphite cost. American ensured to realize laminate technology and make it available to the Collinsville plant. The installation of laminate was scheduled for December 1980 and would charge Dixon $2.5 million, one-time cost depreciated over a period of 10 years. Dixon planned to fund the $12 million purchase price entirely with debt capital. This funding plan would temporarily increase Dixon’s book debt-to-total capital ratio to approximately 47% and would initially raise Dixon’s book debt ratio above its target deb ratio for the consolidated company of 35%. To determine the viability of the acquisition, Dixon needs to conduct net present value (NPV) analysis to determine whether Dixon can purchase Collinsville...
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...KENT CHEMICAL: ORGANIZING FOR INTERNATIONAL GROWTH Introduction: Kent was founded in 1917 as a rubber producer. The Fisher family, which founded the company, was the largest stockholder; and family members held a few key positions. The company is still headquartered in Kent, Ohio. In the 1940’s, Kent expanded into plastics and became one of the country’s largest producers and marketers of plastic additives and specialty chemicals. In 1953, Kent opened a research laboratory, and by 2007, Kent was a leading global specialty chemical company with revenues of $2.2 billion (See Exhibit 1). It held minority and majority stakes in more than two dozen businesses in the U.S. and overseas, employed 4,200 people including 1,200 off shore, operated thirty manufacturing facilities in 13 countries, and sold its products in almost 100 countries. Kent sold a wide variety of products focusing on niche market needs in construction, electronics, medical products and consumer industries. They had six business divisions, three of which had significant international sales. In consumer products, they sold Grease B Gone, the leading degreaser in the U.S., and expanded into other specialty household products such as drain openers, rust removers, and surface cleaners. About one-third of this business’s $522 million sales were outside of the U.S. In the 1950’s, Kent entered the fire protection business by acquiring a company that had developed fire retardant chemicals for apparel...
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...Executive Summary Clariant International Limited is a Swiss chemical company formed in 1995. Through the acquisition of other chemical companies such as Hoechst and Sud-Chemie, Clariant has established itself as “one of the world’s leading specialty chemical companies.” Clariant is involved in multiple markets, including, but not limited to, consumer care, biotechnology and industrial applications. Clariant is split into 6 separate global divisions, which contain, in total, 19 different businesses. The purpose of this case study is to answer the questions; what the cost to implement each of the strategic options facing Clariant Corporation? What revenue growth is necessary to break even and to maintain or improve profitability? And what non-financial criteria might be used to evaluate strategic options Clariant faces issues with its marketing departments structure. The current model is hampering Clariant. We have found that a change in structure is required to deal with the issue. The theory used to deal with the issue is the national accounts system and customer relationship management. Findings In September 2000, Vincent Thompson, vice president of operations said that Clariant had failed to develop its full potential in meeting its sales and profit margin growth based on these two critical performance trends. For example, Functional Chemical (FUN) had negative 3.9% growth in 1999. In 2000, sales growth had dropped further to negative 12.0%. What’s more, Masterbatches...
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...msm clckwckmfc wc wc s sklcmwdofnmwmcskcsxlc,womcwmcslx sxxkcmldddddddddddddkjdmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmCovers the history of portfolio planning at CIBA-GEIGY, a leading Swiss chemical and pharmaceutical company, beginning with the introduction of the process in the mid-1980s. The discussion extends to the application of portfolio planning techniques to a specific investment proposal: the comprehensive modernization of a plant dedicated to the production of high-quality specialty pigmeEXAMPLE: The development of SMEs in the Eastern European countries during the first years of the transition period was difficult and they had to take of work as long as it brought money into a company. The subsequent rapid growth also offered multiple opportunities and the companies made full use of them. Thus, over 70% of Bulgarian companies, for example, had a portfolio that wasn´t related to a defined business strategy and vision for long term development, and its structure reflected the market situation. However, to stay competitive, small companies in all EU countries have had to re-think and optimize their activities; they have to search for new opportunities for their development. That is why they are being forced to create or update their strategy for the future development of the business, based on the prevailing conditions. The assessment of the products and services, offered by the company...
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...and fine jewelry. | Blue Nile’s Current SituationBlue Nile reported $302 million in 2009. In 2010 Blue Nile management was concerned about the lingering effects of poor economic condition in the United States on the diamond jewelry industry and how it should pursue expansion in international business. | 3. INDUSTRY AND COMPETITIVE ANALYSIS Industry Macro-Environmental Characteristics-According with U.S Department of commerce U.S jewelry sales totaled $58.8 billion by 2009.- Diamond jewelry sales were particularly hard hit by the recession, with industry sales declining from $32.5 billion in 2005 to an estimated $29.5 billion in 2009.- The Jewelry Board of Trade estimated that there were some 22,415 specialty jewelry firms in the U.S in 2009, down from 26,750 specialty jewelry retailers in 1999. | Strategic Group MAPBlue Nile Zale Tiffany Others C U S T O M E R S | Industry Driving Forces-Internet: With Blue Nile and online jewelers, it gives them the ability to reach any single person who has internet access. In amassing product offerings, these online jewelers do not have to carry inventory. They are able to display tens of thousands of choices, customizable pieces and even show multiple angles of what...
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