Kent Chemical

1497 Words Nov 17th, 2014 6 Pages
Strategy: Managing Competitive Advantage 2nd Half – Spring 2013/2014

Write Up 2
“Kent Chemical: Organizing for
International Growth”

Sara Alves Ribeiro Goulão
Nº1937
On the “Kent Chemical: Organizing for International Growth” case you assume the role of the consultant reporting on what is going on in the company as a previous step to assess the assignment that they have given you. Please, answer the following questions:
a) What were the problems facing Luis Morales as he began implementing Ben Fisher’s international expansion strategy?
Kent Chemical Product’s result show that 35% of its sales are from overseas operations and these international activities seem to be a potential source to increment sales. Due
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Yet, in terms of price, product and sourcing decisions, there was not a coordinated strategy; price could be different for the same product among distinct corners of the firm. This lead to some issues because, for example, when a subsidiary changed its price, it had an impact in the market; this impact was felt in other subsidiaries of the firm. Without coordination between all the strategies, mainly price strategies, KC ends up suffering from the decision of one of its subsidiaries.
Then, there are also some conflicts between geographic and product organizations, for example the US corporate blocked the UK subsidiary that was trying to expand its product, the new halogenated frame retardant. In this case, it seems there is no coordination and cooperation within the company, which are important variables to have a good performance.
Also, relatively to structure issues, there was a lack of technology transfer in the company because workers and subsidiaries did not communicate and did not cooperate. Like this, the domestic and the international division were not properly connected, and so the international one did not have a clear idea about the new products being developed and did not have technical help from the ones that had a deep knowledge about the products.
Finally, regional managers lacked information and technical expertise, which are important
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