The company has successfully established its business abroad, achieving its strategic aim of increasing its market share within the US market.
It is one of the top 10 worldwide companies in its industry. However, each sector had reached a massive proportions. To deal with this each sector was split according to product and geographic region, which led to a break down in communication among managers and employees.
Rhone-Poulenc has to rethink its overall organization in order to achieve global synergy within its business by:
1)An unique headquarter with 2 subsidiaries in relation to the countries
2)A better attention to products line
[...] Fibres and Polymers USA HQ Speciality Chemicals Health AgroChemical s Organic & Inorganic Fibres & Polymers Speciality Chemicals Health AgroChemicals • The company has successfully established its business abroad, achieving its strategic aim of increasing its market share within the US market. • It is one of the top 10 worldwide companies in its industry. • However, each sector had reached massive proportions. To deal with this, each sector was split according to product and geographic region, which led to a break down in communication among managers and employees. [...]
[...] It would be recommended that RhônePoulenc create a single corporate image similar to that of Diageo It may also be necessary to change the name from Rhône-Poulenc to a new name. This tactic is similar to that of Diageo, who were originally Guinness plc and Grand Metropolitan plc. The new name would give the impression that one company was not inferior to the other. Also, a new name could be more ‘globalized' moving away from the French derived Rhône-Poulenc which promotes a more global image As the management structure is fragmented and lacks a clearly defined structure, it is recommended that the structure be assessed. [...]
[...] Low Threat There is such a high risk associated with these products, businesses rely on RhônePoulenc's strong credibility and research and development to match price. Low Threat Rhône-Poulenc are the suppliers to other businesses and so have they have the majority of the power. Concentrated Market – a function of the number of firms and their respective shares of the total production in a market. It is useful as it reflects the degree of competition in the market. [...]
[...] Although there may be high barriers to entry The Rest of Asia As the case study points out, Asian companies are threatening Rhône-Poulenc's business with cheaper alternative chemicals Rhône-Poulenc could potentially buy these companies out Competitors - Rhône-Poulenc's competitors have massive experience and capital. This means that they can compete with Rhône-Poulenc for mergers or acquisitions. Rhône-Poulenc's competitors include Bayer, BASF and Du Pont. Government regulations Practices for chemical companies are starting to become increasingly stringent. [...]
[...] However this helped with localization of the organiszation They had no experience managing large manufacturing plants or large numbers of staff prior to the acquisitions. The also didn't have the infrastructure to deal with some of the acquisitions. UCAP did not know who Rhone- Poulenc were and so did not know who they were working for. Perhaps fixed their attention too firmly and narrowly on the United States, when their attention should have been focused in other areas. More attention should have been paid to the Asian markets. Japan – chemical consumption $36,198m (OECD, 1977). [...]
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