Clariant Co. Marketing

1176 Words Mar 15th, 2012 5 Pages
1. What is the cost to implement each of the strategic options facing Clariant Corporation and what kinds of revenue growth are necessary to break even and to maintain or improve overall profitability?

The three strategic options are: (1) Sales growth through strategic acquisitions to achieve targeted growth in high-margin segments. (2) Sales growth generated by cross-divisional sales of multiple Clariant lines to key, high-potential customers. (3) Improving margins by emphasizing sales of higher-margin specialty products over the more established “semi-specialty” products (those nearing commodity status).

(1) Mergers and acquisitions can generate long-term profitability for the combined company in the case of a merger, or the
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The objective is to increase high margin product sales by enticing customers to buy, and in addition to adding high margin sales with semi-specialty item sales. On the other side, Clariant should modify the incentives for the salespeople for all three above strategic options.
It is nearly impossible to break even with low margin items, because one would need to sell enough to recover hard/soft costs as well as opportunity costs. High margin items on the other hand may requires a higher demand on product knowledge. Therefor, it is a better opportunity to increase higher margin sales with creative sales techniques.

2. What kinds of non-financial criteria might Clariant Corporation use to evaluate the strategic options?

Non-financial items are a set of variables such as customer satisfaction, job satisfaction, management control system (MCS) that are not measured by financial systems. Non-financial criteria might effect the company’s business decision or operation, but it won’t affect it by the dollars.
Non-financial performances are important to predict the future performance of the company, and can provide supplementary and increasing data apart from financial data for decision making of
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