Kent Chemical Debriefing

By: Careea Nordè, Karen Nostrant, Heather

Smith, Mary Stephens, & William Tiemann

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

1998 ◦ CEO, Ben Fisher decided to expand globally

(Barlett & Winig, 2012)

Who is Kent Chemical

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)

Kent’s Struggles

Follow Porter’s Five Forces to become global and sustain long-term profitability by reshaping the forces in Kent’s favor

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)

Strategic Approach

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.

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)

Primary Issues and Opportunities

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.

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)

Primary Issues and Opportunities

(Bartlett & Winig, 2012)

Kent Chemical will need to implement the following:

They will need to have an outside consulting firm come in andMake a matrix for Kent Chemical to follow both international andIn 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.

Implementation

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 highlyQualified individuals to work as a team connecting the divisions.

DIVISIONS

(Bartlett & Winig, 2012)

(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.

Team Work

Which summarizes the “five forces” competitive framework

Public Policy and chance

Competiveness of the home industry

Which describes the role government plays in the industry

(De Kluyver, 2010)

Clustering Porters National Diamond Theory

Kent Chemical should also follow the Clustering Porters National Diamond Theory which has six components.

Factor conditions

Home and country demand of products

Relating and supporting industries

Which explains why certain regions of the countryAttract certain businesses

Which is demand of the homeCountry whether they have large orSmall markets.

Which includes the supporting industriesIn the region.

SUBSIDIARIES

◦ Align efforts of subsidiaries where market is best◦ Global subsidiaries of a business should never compete or become a barrier to

profit.

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.

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)

NEXT STEPS/ ANALYSIS

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.

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)

STRATEGY/GLOBAL POSITIONING

Conclusion• Present--Leading global specialty-chemical

company

• Goal--Expand internationally into a globally- integrated organization

• Struggles--Need to resolve global economic threats to align international &

domestic sides of the company

(Bartlett & Winig, 2012)

Sterling Partners—International Management consulting team promotes cohesiveness

“Decision Matrix” model Internet-linked communications Accountability Decentralization Shared vision

(Bartlett & Winig, 2012)

Resolution

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)

Strategic Implementation

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?

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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/

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r3ZUOdcQFpD3M

References

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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