Axeon Case Analysis

2005 Words Dec 20th, 2010 9 Pages
R | AXEON N.V. | | Case Analysis |

R | AXEON N.V. | | Case Analysis |

Table of Contents

Axeon N.V Overview 2
SITUATION ANALYSIS 2
ENVIRONMENTAL ANALYSIS 3
EXTERNAL SIZE UP 3
INTERNAL SIZE UP 3
ISSUE DESCRIPTION 3
SWOT ANALYSIS FOR NEW FACTORY 5
FINANCIAL ANALYSIS 6
Manufacture product in UK 6
Manufacture product in Netherlands 7
ALTERNATIVE 1: 8
Build the manufacturing plant in U.K. 8
ALTERNATIVE 2: 9
Manufacture more product in Netherland and sale it to cost to Hollandsworth 9
RECOMMENDATION 10
QUESTIONS 11
QUESTION #1 11
QUESTION #1b 11
QUESTION #1c 11
QUESTION #2 12
EXHIBITS 13

AXEON N.V.
Case Analysis

Axeon N.V Overview
Axeon N.V. is a producer of industrial chemicals with 24
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One important factor under consideration was the location of producing AR-42 for the U.K. market. If Axeon decided to manufacture AR-42 in the Netherlands for sale in the U.K., transport and custom were estimated at 10%, which would direct impact the variable cost per ton.
The Chemical industry for industrial coatings was based on a low cost, high volume strategy, which forced producers to focus on cost cutting measures.

INTERNAL SIZE UP

Axeon’s senior leadership team emphasizes a high degree of decentralization. Furthermore, Axeon has grown through inorganic growth due to the acquisitions in Europe. In addition, they let subsidiaries prepare business cases, select products to be sold, sourced, or manufactured. At times decentralization was so strong that sister companies were allowed producing products that would directly compete with Axeon’s Dutch products.

ISSUE DESCRIPTION

The issue that Anton van Leuven faces is the approval of the proposal to build a manufacturing plant in the UK to facilitate local sales of the AR-42 product. Specifically, product and marketing business units of Axeon perceived the sales projections as optimistic. Anton Van Leuven required further justification to proceed with the proposal.

SWOT ANALYSIS FOR NEW FACTORY

Strengths * Local production

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