The Synthetic Rubber Polymer Business Essay

Polysar Limited is Canada’s largest chemical company. It is structured into 3 groups, namely, basic petrochemicals, rubber, and diversified products. Rubber Group is the largest of the three operating units of Polysar Limited. The primary users of its products, such as butyl and halobutyl, are manufacturers of automobile tires; other users are from various industries. In 1986, Rubber group contributed 0.8 billion which is 46 percent of the company annual sale. The operation of the group is divided into four divisions, NASA (North America and South America) and EROW (Europe and rest of the world), Research department and Global Marketing department. NASA and EROW operate as profit centers each produce butyl and halobutyl

High capital expenditure into research and development, lengthy approval process, marketing before any realized returns are a major deterrent for any new entrant. It is a highly regulated industry. Also, the presence of “big pharma” companies deters new competitors.

Economic: Globalization of the pharmaceutical industry is an exciting opportunity to have research and development done at cheaper prices in other countries. However, this could be a double edged sword for companies because it is easy for other countries, such as India, to produce generic versions of the drug in bulk.

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

Eli Lilly’s decision to create a joint venture was not surprising (figure 1). The India government limited foreign direct investment to 51%, importing was subject to manufacturing at high costs outside the country and then paying high importation tariffs, and licensing was not prudent due to an absolute lack of product patents laws that were needed to protect Eli Lilly’s intellectual property.

The most common form of polyethylene is petroleum based or olefins based; as before mentioned polyethylene compounds have a wide commercial applicability and are made from non-renewable resources (Harding, Dennis, von Blottnitz, Harrison, & S.T.L., 2007). Its manufacturing processes are regarded as energy intensive and release significant amount of CO2 and heat into the atmosphere (Broderick, 2008). Next a little more detailed description of polyethylene’s production processes will be presented, with a focus on the way the material inputs are extracted and synthesized.

Siam Cement’s offer to purchase an initial order of 200 units at $9,000 per unit, would lead to a net profit of $200,000. While this immediate cash influx may seem advantageous in the short term, it will not offset yearly operational expenses of $250,000 (See Exhibit 1). Additionally, accepting Siam Cement’s offer would position Rubbertech as an Original Equipment Manufacturer (OEM). This decision could impede potential growth that would far exceed the offer that is currently on the table. If Rubbertech does not accept Siam Cement’s offer, they can seize a part of

The company is so large that no one drug can lift it from its current sales doldrums. In addition, the company was once highly attractive to investors, but its recent stock price fell to 1997 lows. This may put pressure on the company to attempt acquisitions at a time when the company is ill-equipped to integrate a new company into its organization, and it is engaged in a cost-cutting program at a time when it may need to invest even more in research and development (McTigue Pierce, 2005).

Extremely risky drug discovery and development, lengthening development times which increase development cost, return on investments, and generic competitors.

The second rests in Pfizer’s expiring patents on several popular drugs that invite their competitors to enter the market with similarly performing pharmaceuticals. Once these patents expire, Pfizer will either have to extend the patent through reformulating the performance of the drug for another purpose called “ever greening”, or abandon the line in the pursuit of another, more profitable product. Regardless of what they do in terms of their own product offerings, generic imitations of their products will enter the market, diluting the profitability of the drug and forcing reliance on the sales of other existing products to make up the loss.

The most important issue that can impact Pharm Universe is if any of their formula is stolen by hacking into their information systems. Such an incident will have a negative effect on the company and it won’t be able to meet its goals like increasing market share to 10 percent

This report seeks to explain the key differences between the NASA (North American South American) and EROW (Europe and rest of world) sales performance over the past nine months. There are several reasons causing the sales performance figures currently stemming from NASA to be incomparable with the EROW numbers, including the current practice of transferring large quantities of regular butyl rubber from the Sarnia to the Antwerp production facilities. As Polysar operates globally, it

Polysar Limited is Canada’s largest chemical company. Its Rubber Group accounts for 46% of Polysar’s sales. The primary products for this group are butyl and halobutyl and the principal customers for these products are tire manufacturers. The rubber Group has two divisions: NASA (North America & South America) and EROW (Europe & elsewhere). There is product transferring between NASA and EROW and the Vice President of NASA is required to present the performance results to the Board of Directors and explain why the bottom line is lower than expected.

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.

Demand for rubber is rising as consumption rises and demand is anticipated to outstrip production by 2017 (Rapoport, 2007).