Dow Chemical Case When Petroquímica Bahia Blanca S.A. (PBB) began the process of becoming privatized by the Argentine government, Dow Chemicals saw the acquisition of this company as a golden opportunity to become the leading polyethylene player in Latin America. Dow Chemical’s was already a major player in the chemicals (ethylene), plastics (polyethylene), and agricultural products industries holding position as a low-cost producer. Breaking each segment of their business down into these categories respectively, Dow Chemicals was able to generate annual revenues of 20.2 billion making them the leader in market position worldwide for some chemical product lines accounting for 7% of global capacity. Dow embraced a strategy …show more content…
The Polyethylene industry is driven by demand in innovation of new packaging, raising living standards and growing populations in emerging markets. The demand in end user markets for products that are produced for commercial use by Polyethylene. Polyethylene represented approximately 15% of Dow’s total sales and 35% of its operating profit. Dow was the worldwide leader in production accounting for 7% of the global capacity for the production of ethylene and polyethylene. Dow Chemical was looking for expansion opportunities in the South American market. In 1995 the opportunity arose to become apart of the regions ever growing polyethylene market with in Argentina. Argentina’s economy opened up with the elimination of all duties, Charges and other restrictions in the trade between the members of Mercosur, a trading bloc created in 1991 which included Argentina, Brazil, Paraguay and Uruguay. The petrochemical producers in Argentina will now be competing with the much larger and advanced Brazilian petrochemical producers. This caused a big disadvantage for Argentina’s largest government controlled polyethylene plant PBB(Petroquímica Bahia Blanca) complex whose technology and scale was no longer in line with international standards. So the Argentine government decided to privatize the plant.
Dow chemicals vice president for business development in Latin America, watch the rapid transformation occurring in Argentina. He watched the improved standard of living in
Pecom, compañía petrolera de Argentina, desde sus inicios fue ganando terreno en la industria del petróleo avanzando a buen ritmo a través del paso de los años. Desde la obtención de su primera concesión, hasta el inicio de operaciones en diversos países sudamericanos, Pecom se fue consolidando como una empresa fuertemente integrada verticalmente.
Advanced Fuels Corporation (AFC) was founded five years ago by Dr. Zachary Aplin. In the fourth year of research he and his two –member staff made a major break-through that can convert grain waste products into ethanol which can mix with gasoline to produce a better burning automobile fuel. Producing ethanol from waste products would lower its cost dramatically so the market potential of the blended fuel would be increased. After AFC receiving a patent for Dr. Aplin’s unique ethanol production process he decided to broaden the scope of operations of the company but he doesn’t have additional funds to put in. So, he developed
Forensic science evidence admissibility is when the forensic evidence can be used in the courtroom against a person. Any forensic science evidence that is admissible will be used in courtroom against that defendant. All types of evidence are shown to a judge or a jury to me a case against a suspect. Evidence that can be considered admissible, is any document, testimony, or tangible evidence used in a court of law. There are four types of evidence. The four types of evidence are demonstrative, documentary, real, and testimonial evidence. An example of demonstrative evidence is
The case study on Pacific Oil Company shows from beginning to end the role of power in the outcome of a negotiation. From the beginning, the problem that Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company was that they did not assert the power necessary to really end up with the outcome of the negotiation they were hoping for. The case study points out several factors that Pacific Oil Company is trying to achieve in the contract negotiations with Reliant Chemical company: the change to a surplus of VCM in the market, the possibility of Pacific Oil needing a supply of their own of VCM to produce their own PVC, and the start-up of several other companies in the production of VCM (Lewiski, n.d.). These
MTC initially needed to obtain substantial investment capital due to two main factors: a research-heavy industry, and the need to create most of the markets for its products. Although the founders' goal was to become a major manufacturing company, they did estimate that the company would need $50 million in capital before it would become self-sufficient. Their initial financing model was to first recruit a superior technical team, use that to attract additional equity investment and development funding from interested corporations, and then develop manufacturing capabilities. Commercial sales began 2.5 years after inception, and MTC is nearing the break-even point in 1990.
This report introduces us to the Plastco Packaging Company, its current operating environment, and the many problems it faces. The report proceeds to identify solutions, and weighs their costs and
Production operations played a huge role on whether to allow more production in North America, or more in Europe-Africa. After many decisions, we begun to notice that North America, and Europe-Africa were our main consumers and had stronger demands for our products, we suddenly realized that we should offer the other more compensation to raise the production. We than decided to offer Asia-Pacific, and Latin America a larger discounts, and longer return dates, to increase the demands.
The latter has further been exacerbated by a lack of incentives for Metro branches, the main sales and marketing agents for the product, to sell Due Bills.
CEO John McDonough decided on making acquisition of Calphalon and Rubbermaid, which influent shareholders’ confidence.
João Nogueira Batista, Chief Financial Officer of the Brazilian firm Petrobras, reflected on Gros’s words as he prepared for a Board of Directors meeting in July 2002. The main item on the Board’s agenda was the proposed acquisition of an Argentinean firm, the Perez Companc Group, or Pecom.2 The acquisition would significantly increase Petrobras’s oil and gas production and add to its oil reserves. It would also provide the mainly Brazilian-based
the bidding price on Petroquímica Bahia Blanca S.A. (PBB), which was being privatized by the
United Beverages’ CEO is debating with his department heads on the course of action the company is going to take in the future. Their flagship product, GangBuster, has been highly successful for the past 5 years. However, they have been thinking of entering the market for Energy Drinks for kids. Paul Diaz also comes up with a revolutionary idea of the dual-drink, having two separate flavored drinks in a bottle and being able to mix both flavors. Due to the limited resources of United Beverages, they have two weeks to decide whether to expand their portfolio or not?
A long-term strategic management issue for GM is the increasing global competition due to the mergers and acquisitions of its competitors. The partnership of Heineken and FEMSA (Mexico’s second largest beer company in terms of market share) was formed for the sole purpose to dethrone Corona as the best-selling import beer in the United States. To make matters worse, there were also rumours of large mergers and acquisitions of mid-tier brewers in order to better compete and expand globally. In addition, with the introduction of NAFTA, Canadian and U.S. competitors were slowly beginning to penetrate the Mexican market, which had the potential to chip away at the majority market share GM enjoyed.
Oxford Plastics, the plant was located in a town near Beatty, about 45,000 people. They manufactured a variety of products, from lawn ornaments, patio furniture to automobiles. They employed about 3,000 workers. The company played an important part in the economy and the entire state, offering few well paying factory jobs.
The Brazilian subsidiary, long the company's largest source of profit outside the U.S., was reeling from colossal currency translation losses and soaring interest rates. In North America, productivity was deteriorating as the sales force braced for the reorganization scheduled to begin in January.