File - Karen M. Nostrant E

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By:
Careea Nordè, Karen Nostrant, Heather
Smith, Mary Stephens, & William Tiemann
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Established in 1917 by the Fisher Family
Founded in Kent, Ohio
Began as rubber producer
Expanded into plastics and other specialty
chemicals
1953
◦ Opened research laboratory to develop more
products
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1998
◦ CEO, Ben Fisher decided to expand globally
(Barlett & Winig, 2012)
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Fisher’s global expansion vision proved difficult
International President, Luis Morales led two
reorganizations that did not align the
international side with the domestic side
Operated 30 manufacturing facilities in 13
countries
Sold products in nearly 100 countries
Need the final reorganization to resolve the
global economic threats that Kent faces
Consulting firm, Sterling Partners called to help
(Barlett & Winig, 2012)
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Follow Porter’s Five Forces to become global
and sustain long-term profitability by
reshaping the forces in Kent’s favor
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Threats of new entrants
Bargaining power of customers
Threat of substitute products or services
Bargaining power of suppliers
Industry position amongst current competitors
(Porter, 2008)
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Growth and the demands
 Increased their global market impact by acquiring foreign
companies.
 Managers of Kent Chemical Products used the
independence of overseas subsidiaries for their own
benefit.
 Regional organization having difficulties dealing with
issues within global markets with Kent Chemical
International.
 Country managers were asked to work for the benefit of
both organizations and not one specific organization.
 Caused resistance and old decision making habits to continue.
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Products that were successful in one
country did not sell well in another.
 Halogenated flame retardant sales were successful in the
United States, but did not do well in European countries.
(Bartlett & Winig, 2012; Cusac, Estes, Khan, 2013; Danke, Jacobs & Lane,
2013; Nordè, Nostrant, Smith, Stephens & Tieman, 2013)
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Lack of communication between Kent Chemical
International (KCI) and Kent Chemical Products
(KCP).
 Management of acquired companies were allowed to
continue to operate using old habits and operating
procedures.
 Kent Chemical Products management were not involved in
decisions being made by the international subsidiaries.
 Changes were being made at facilities without regard of
how it may affect other facilities around the world.
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The new financial operating system
 Company reports were now allowed to be viewed by
employees that were not allowed to in the past.
 Country managers were now being questioned by others
about their decisions.
 Caused problems as they were use to making decisions
without being questioned.
(Bartlett & Winig, 2012; Cusac et al., 2013; Danke et al., 2013)
Kent Chemical will need to implement the following:
They will need to have an outside consulting firm come in and
Make a matrix for Kent Chemical to follow both international and
In America.
The following decisions from the consulting firm are:
1. A well defined chain of command within the company.
2. Accountability from the different divisions within the company.
3. Responsibility of corresponding with authority within the company.
4. Have fewer levels of delegation within the company so they can problem solve
and make decisions with flexibility.
(Bartlett & Winig, 2012)
DIVISIONS
Then Kent chemical will need to select teams for the different
divisions. Consisting of six team members to carry the work load.
Consumer Product Division
Fire Protection Products Division
Director of Medical Plastics Division
All three of these
teams are to be comprised of six highly
Qualified individuals to work as a team connecting the
divisions.
(Bartlett & Winig, 2012)
Then Kent chemical will need to select teams for the different divisions
Consisting of six team members to carry the work load.
Competiveness of the home industry
Public Policy and chance
Which describes the role government plays in the industry
(Bartlett & Winig, 2012)
Kent Chemical should also follow the Clustering
Porters National Diamond Theory which has six
components.
Factor conditions
Which explains why certain regions of the country
Attract certain businesses
Home and country demand of products
Which is demand of the home
Country whether they have large or
Small markets.
Relating and supporting industries
Which includes the supporting industries
In the region.
(De Kluyver, 2010)
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SUBSIDIARIES
◦ Align efforts of subsidiaries where market is best
◦ Global subsidiaries of a business should never compete or become a
barrier to profit.
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DECENTRALIZATION
◦ Allows each branch to operate independently of each other, creating value
for the overall business.
◦ allow subsidiaries to align goals, taking advantage of team strategies,
netting more profit than before.
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EVALUATE COMPANY WITHIN THE 5 STAGES
◦ In order for the team to implement and evaluate the chosen strategy, they
will need to evaluate the company within the five stages presented by De
Kluyver: market entry, product specialization, value chain disaggregation,
value chain reengineering, and he creation of new markets.
(Danke et al., 2013; Nordè et al., 2013; De Kluyver, 2010)
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SWOT
◦ To reiterate what the SWOT analysis does and how it can assist Kent in its
endeavors of obtaining a more prominent global posture, the organization
has to inspect all aspects and consider all factors at each stage. In doing
this, they will illuminate and acquire understanding of the market within
the different countries that they operate.
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MARKET RESEARCH
◦ Concurrently, as Kent is operating within the five stages and implementing
the SWOT analysis, they should also recognize the aggressive market
forces within the country where they are engaged in business. Once those
forces are identified, an analysis of what is driving those forces should be
conducted and capitalized upon. These actions will allow Kent to directly
impact the root or core of the market and give them the position of
controlling the market and increasing their profitability as well as their
global posture.
(“SWOT analysis I,” 2006; “SWOT analysis II,” 2006; Nordè et al., 2013)
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Present--Leading global specialty-chemical
company
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Goal--Expand internationally into a globallyintegrated organization
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Struggles--Need to resolve global economic
threats to align international &
domestic sides of the company
(Bartlett & Winig, 2012)
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Sterling Partners—International Management
consulting team promotes cohesiveness
“Decision Matrix” model
Internet-linked communications
Accountability
Decentralization
Shared vision
(Bartlett & Winig, 2012)
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Porter’s Five Forces
Porter’s National Diamond Clustering Theory
SWOT Analyses—Internal & External
De Kluyer’s Five Stages of Globalization
Value Creation & Corporate Global Success
(Porter, 2008; De Kluyver, 2010; “SWOT Analysis I,” 2006; “SWOT Analysis II,” 2006)
Bartlett, C.A., & Winig, L. (2012). Kent chemical: organizing for international growth. Retrieved from Harvard University,
Harvard Business School Publishing for Educators website: https://cb.hbsp.harvard.edu/cbmp/asset/19098893
Cusac, J., Estes, M., & Khan, R. (2013). Kent Chemical. Retrieved from Siena Heights University website: http://sienaonline.org
/re/DotNextLaunch.asp?courseid=7474171&userid=13076732&sessionid=a115ac3246&tabid=HaGj09c+rKNgLRc
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mMfB5esKAkCVCwEHSjpXUi+hKe9v+tiw3rqaCb+G6lHXnfrajw3DKzaqg9+ltEfGWOffJA8Ap1WOIofhZe9aEr
3ZUOdcQFpD3M
Danke, S., Jacobs, S., & Lane, C. (2013). Case Analysis for Kent Chemical Product. Retrieved from Siena Heights University
website: http://sienaonline.org/re/DotNextLaunch.asp?courseid=7474171&userid=13076732&sessionid=130767
32&sessionid=a115ac3246&tabid=HaGj09c+rKNgLRcOeyXYX5p0QKYvY06grr0iQg8yI+MZyD1Q1WNB/fBzyD1Q1W
NB/fBzqJUFChtQfXVKzbsk2vk2Vak06nQymQ==&sessionFirstAuthStore=true&macid=INgmjRcA/MJVeX
eCsFIZD2DId2R/A5dc65zR8Yt4TNi7I3ZmFadW31QS5lkGiwY9+mdsEzhzBaDiZ4JPcrMWmMKyJomlrl
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JmMfB5esKAkCVCwEHSjpXUi+hKe9v+tiw3rqaCb+G6lHXnfrajw3DKzaqg9+ltEfGWOffJA8Ap1WOIofhZe9aE
r3ZUOdcQFpD3M
De Kluyver, C. (2010). The globalization of companies and industries. In Fundamentals of global strategy: A business model
approach (pp. 23-42). Retrieved from Harvard University, Harvard Business School Publishing for Educators
website: https://cb.hbsps.harvard.edu/cbmp/asset/19098887
Nordè, C., Nostrant, K., Smith, H., Stephens, M., & Tieman, W. (2013). Kent Chemical Case Analysis. Retrieved from Siena Heights
University website: http://sienaonline.org/re/DotNextLaunch.asp?courseid=7474171&userid=13076732&session
id=a115ac3246&tabid=HaGj09c+rKNgLRcOeyXYX5p0QKYvY06grr0iQg8yI+MZyD1Q1WNB/fBzqJUFChtQfXVKzbsk2
vk2Vak06nQymQ==&sessionFirstAuthStore=true&macid=INgmjRcA/MJVeXeCsFIZD2DId2R/A5dc65zR8Yt4TNi7I3Z
mFadW31QS5lkGiwY9+mdsEzhzBaDiZ4JPcrMWmMKyJomlrlxKUjIUpFhxakgTjNUX4ltllhJh/km8LiFxpSkqmFIeOo5oWQ
osjZ+TJeG5pQdmqJmMfB5esKAkCVCwEHSjpXUi+hKe9v+tiw3rqaCb+G6lHXnfrajw3DKzaqg9+ltEfGWOffJA8Ap1WOIo
fhZe9aEr3ZUOdcQFpD3M
Porter, M. E., (2008). The five competitive forces that shape strategy. Retrieved from Harvard University, Harvard Business
School Publishing for Educators website: Retrieved from https://cb.hbsp.harvard.edu/cbmp/asset/19098871
SWOT analysis I: Looking outside for threats and opportunities. (2006). Retrieved from Harvard University, Harvard Business
School Publishing for Educators website: https://cb.hsp.harvard.edu/cbmp/asset/19098877
SWOT analysis II: Looking inside for strengths and weaknesses. (2006). Retrieved from Harvard University, Harvard Business
Publishing for Educators website: https://cb.hbsp.harvard.edu/cbmp/asset/19098879
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