Strategy analysis for the company chemical industry Rhone-Poulenc

Extract

[...] Fibres and Polymers USA HQ Speciality Chemicals Health AgroChemical s Organic & Inorganic Fibres & Polymers Speciality Chemicals Health AgroChemicals • The company has successfully established its business abroad, achieving its strategic aim of increasing its market share within the US market. • It is one of the top 10 worldwide companies in its industry. • However, each sector had reached massive proportions. To deal with this, each sector was split according to product and geographic region, which led to a break down in communication among managers and employees. [...]

[...]  It would be recommended that RhônePoulenc create a single corporate image similar to that of Diageo  It may also be necessary to change the name from Rhône-Poulenc to a new name.  This tactic is similar to that of Diageo, who were originally Guinness plc and Grand Metropolitan plc.  The new name would give the impression that one company was not inferior to the other.  Also, a new name could be more ‘globalized' moving away from the French derived Rhône-Poulenc which promotes a more global image  As the management structure is fragmented and lacks a clearly defined structure, it is recommended that the structure be assessed. [...]

[...]   Low Threat  There is such a high risk associated with these products, businesses rely on RhônePoulenc's strong credibility and research and development to match price.  Low Threat  Rhône-Poulenc are the suppliers to other businesses and so have they have the majority of the power. Concentrated Market – a function of the number of firms and their respective shares of the total production in a market.  It is useful as it reflects the degree of competition in the market. [...]

[...]  Although there may be high barriers to entry  The Rest of Asia  As the case study points out, Asian companies are threatening Rhône-Poulenc's business with cheaper alternative chemicals  Rhône-Poulenc could potentially buy these companies out  Competitors - Rhône-Poulenc's competitors have massive experience and capital.  This means that they can compete with Rhône-Poulenc for mergers or acquisitions.  Rhône-Poulenc's competitors include Bayer, BASF and Du Pont.  Government regulations  Practices for chemical companies are starting to become increasingly stringent. [...]

[...]  However this helped with localization of the organiszation  They had no experience managing large manufacturing plants or large numbers of staff prior to the acquisitions.  The also didn't have the infrastructure to deal with some of the acquisitions.  UCAP did not know who Rhone- Poulenc were and so did not know who they were working for.  Perhaps fixed their attention too firmly and narrowly on the United States, when their attention should have been focused in other areas.  More attention should have been paid to the Asian markets.   Japan – chemical consumption $36,198m (OECD, 1977). [...]