Business Admin
Assignment #1 Case 11: Great Lakes: Great Decisions"
Professor Mike Petty
Senior Seminar Business Admin 499
July 5th, 2011
1.Perform an analysis of the Social/Demographic, Technological, Economic, Environmental
Geographic, and Political/Legal/Governmental segments to understand the general environment
facing Great Lakes. Describe how Great Lakes will be affected by each of these external
factors.
Great lakes social/ demographic is in the United States (Indian based/Michigan based) also
having a multinational presence in developing countries.
Technology - Great lake developed and produced a variety of specialty chemical products.
The company acquired Octel Associates, a tetraethyl lead (TEL) producer for its capacity to
produce bromine. Though Octel used the chemical to make the additives, Great lakes used them
in other products. The focus was on the TEL"gold mine" that Octel provided. The company
was willing, in order to get the bromine-producing capability, to take on the last years of
production of lead additives as well as an ethical and public relation challenge. This would
affect the company because of leaded chemicals being banned in most of the developed world.
Economic- Octel represented 59% or $259 million, of Great Lakes total operating profit of
$439 million. It was projected that Octels share of profits from operations would not fall below
50% for many years despite the decline in pounds of TEL sold. By 1995, Great Lakes had a $5
billion in annual revenue, with consistent and healthy 15 percent operating profit margins.
Environmental/Geographic-Great Lake had a dilemma at hand in this segment because of the
product. Though success was promising and the company flourished it was unappealing
because of the major environmental issues, large capital cost for building plants and the
merciless publicity which was not a good look for the company. The company received a lot of
ridicule
Professor Mike Petty
Senior Seminar Business Admin 499
July 5th, 2011
1.Perform an analysis of the Social/Demographic, Technological, Economic, Environmental
Geographic, and Political/Legal/Governmental segments to understand the general environment
facing Great Lakes. Describe how Great Lakes will be affected by each of these external
factors.
Great lakes social/ demographic is in the United States (Indian based/Michigan based) also
having a multinational presence in developing countries.
Technology - Great lake developed and produced a variety of specialty chemical products.
The company acquired Octel Associates, a tetraethyl lead (TEL) producer for its capacity to
produce bromine. Though Octel used the chemical to make the additives, Great lakes used them
in other products. The focus was on the TEL"gold mine" that Octel provided. The company
was willing, in order to get the bromine-producing capability, to take on the last years of
production of lead additives as well as an ethical and public relation challenge. This would
affect the company because of leaded chemicals being banned in most of the developed world.
Economic- Octel represented 59% or $259 million, of Great Lakes total operating profit of
$439 million. It was projected that Octels share of profits from operations would not fall below
50% for many years despite the decline in pounds of TEL sold. By 1995, Great Lakes had a $5
billion in annual revenue, with consistent and healthy 15 percent operating profit margins.
Environmental/Geographic-Great Lake had a dilemma at hand in this segment because of the
product. Though success was promising and the company flourished it was unappealing
because of the major environmental issues, large capital cost for building plants and the
merciless publicity which was not a good look for the company. The company received a lot of
ridicule