Clariant Co. Marketing

Topics: Customer service, Sales, Management Pages: 4 (1161 words) Published: February 29, 2012
1. What is the cost to implement each of the strategic options facing Clariant Corporation and what kinds of revenue growth are necessary to break even and to maintain or improve overall profitability?

The three strategic options are: (1) Sales growth through strategic acquisitions to achieve targeted growth in high-margin segments. (2) Sales growth generated by cross-divisional sales of multiple Clariant lines to key, high-potential customers. (3) Improving margins by emphasizing sales of higher-margin specialty products over the more established “semi-specialty” products (those nearing commodity status).

(1) Mergers and acquisitions can generate long-term profitability for the combined company in the case of a merger, or the purchasing company in the case of an acquisition. A merger may not always be successful, and sometimes it results in a loss. The losses could be trigger by technological incompatibility, unnecessary employees or equipment, or poor management between two combined companies. To avoid those problems, two companies need to do detailed research, maintain the employee environment, and in the case of larger companies it must increase shareholder value quicker than if the two companies were still separated. Business acquisition sometimes result in some loss, such as when a second company is purchased, new management has to reconfigure the employee environment and operations among other things. The second company might need to be responsible with the past debt, present debt, problems, assets, or liabilities from the purchased company when they process the acquisition procedure. For the revenue growth aspect, the purchasing company needs to figure out what segment from the purchased company is losing money, and then reconstruct the sales program in combined company. By executing this, the combined company can get the break-even point and improve overall profitability.

(2) Cross sales allows the customer to purchase products from a single...
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