Solvay
Solvay Group: International Mobility and Managing Expatriates
Group 10
(14F551, 14S558, 14S559, 14F560, 14F561, 14F562)
Problem Statement
How to improve/streamline international mobility program of Solvay?
External Analysis:
PESTCL:
Factor
Impact
P
Pricing Controls
Pricing Controls have been imposed by the government outside US, so the cost reduction is essential to streamline the mobility program
E
Bulk Buyers
The existence of bulk buyers for chemicals lead to high volatility risk which means that cost efficiency determined profitability. So cost efficiency is important for international mobility
Competition
There is a lot of competition in chemical industry globally which erodes labour base. Lack of R&D in Europe and lower cost in emerging countries in Asia indicates that they should probably improve their operational efficiencies by acquisitions there.
High priced drugs
Because of higher priced drugs the demand for generic drugs increased and they should compete with companies producing generic drugs and should be cost effective
S
NA
NA
T
NA
NA
C
Cultural Diversity
There is a lot of difference in the working style and cultures in the Europeans countries. There are a lot of stigmas even in English speaking /European countries which means that it is difficult to succeed internationally keeping in mind the cultural diversities
L
Compliance Costs
The disproportionate regulations in European companies have become a competitive disadvantage for them and the compliance costs were very high which means there is a need for focusing on this before expansion
Relocation Costs
The increased concern for environmental pollution demanded companies to relocate there by increasing the relocation expenses which are to be considered before expansion
Internal Analysis:
Strengths
Exposure for the employees to various countries and cultures
Believed in the philosophy of continuous improvement
Highly adaptable
Remuneration keeping employees happy
Well placed Monitoring system
Group 10
(14F551, 14S558, 14S559, 14F560, 14F561, 14F562)
Problem Statement
How to improve/streamline international mobility program of Solvay?
External Analysis:
PESTCL:
Factor
Impact
P
Pricing Controls
Pricing Controls have been imposed by the government outside US, so the cost reduction is essential to streamline the mobility program
E
Bulk Buyers
The existence of bulk buyers for chemicals lead to high volatility risk which means that cost efficiency determined profitability. So cost efficiency is important for international mobility
Competition
There is a lot of competition in chemical industry globally which erodes labour base. Lack of R&D in Europe and lower cost in emerging countries in Asia indicates that they should probably improve their operational efficiencies by acquisitions there.
High priced drugs
Because of higher priced drugs the demand for generic drugs increased and they should compete with companies producing generic drugs and should be cost effective
S
NA
NA
T
NA
NA
C
Cultural Diversity
There is a lot of difference in the working style and cultures in the Europeans countries. There are a lot of stigmas even in English speaking /European countries which means that it is difficult to succeed internationally keeping in mind the cultural diversities
L
Compliance Costs
The disproportionate regulations in European companies have become a competitive disadvantage for them and the compliance costs were very high which means there is a need for focusing on this before expansion
Relocation Costs
The increased concern for environmental pollution demanded companies to relocate there by increasing the relocation expenses which are to be considered before expansion
Internal Analysis:
Strengths
Exposure for the employees to various countries and cultures
Believed in the philosophy of continuous improvement
Highly adaptable
Remuneration keeping employees happy
Well placed Monitoring system