Dow Chemical Business Analysis
Dow Chemical - Business Analysis Part 2
Cherry Fugate-Lange
Management 521
June 7, 2012
Dr. Albert Smothers
Dow Chemical - Business Analysis Part 2
Historically, the chemical industry has operated in a competitive environment, which is not anticipated to change. Dow experiences significant competitions in each of its operating segments as well as in each of the geographic areas in which it operates. Dow competes globally on the foundation of quality, technology, price, and customer service and operates in an integrated manufacturing environment. Basic raw materials are processed through many stages to produce many products that are sold as finished goods at different points in the process. Dow has two major raw material streams that feed the production of the finished goods which are chlorine-based and hydrocarbon based raw materials. (Dow Chemical Company, n.d.)
Business Environment The business environment of Dow is one that has strategically positioned itself to withstand the ever-changing forces of economic, social, political and technological factors it faces daily. Dow consistently identifies opportunities and new technologies before its competition which stimulates their industry-leader position. (1)
Financial Health Dow has great financial strength. Their sensible financial discipline has proven beneficial in recent global economic challenges and has actually helped position it for future growth. The recent global economic challenges forced Dow to take steps towards strengthening and diversifying its portfolio. The company has come out on the other side of the challenges with a portfolio that is better equipped for economic uncertainties. (Dow Chemical Company, n.d.)
During 2011, Dow: * had double-digit gains in revenue and earnings per share * posted record revenues at a Company level, as well as in emerging geographies * introduced “game-changing” investments and partnerships that will allow the Company to capture
Cherry Fugate-Lange
Management 521
June 7, 2012
Dr. Albert Smothers
Dow Chemical - Business Analysis Part 2
Historically, the chemical industry has operated in a competitive environment, which is not anticipated to change. Dow experiences significant competitions in each of its operating segments as well as in each of the geographic areas in which it operates. Dow competes globally on the foundation of quality, technology, price, and customer service and operates in an integrated manufacturing environment. Basic raw materials are processed through many stages to produce many products that are sold as finished goods at different points in the process. Dow has two major raw material streams that feed the production of the finished goods which are chlorine-based and hydrocarbon based raw materials. (Dow Chemical Company, n.d.)
Business Environment The business environment of Dow is one that has strategically positioned itself to withstand the ever-changing forces of economic, social, political and technological factors it faces daily. Dow consistently identifies opportunities and new technologies before its competition which stimulates their industry-leader position. (1)
Financial Health Dow has great financial strength. Their sensible financial discipline has proven beneficial in recent global economic challenges and has actually helped position it for future growth. The recent global economic challenges forced Dow to take steps towards strengthening and diversifying its portfolio. The company has come out on the other side of the challenges with a portfolio that is better equipped for economic uncertainties. (Dow Chemical Company, n.d.)
During 2011, Dow: * had double-digit gains in revenue and earnings per share * posted record revenues at a Company level, as well as in emerging geographies * introduced “game-changing” investments and partnerships that will allow the Company to capture
References: Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2010). Understanding Business (9th ed.). : McGraw-Hill. Dow Chemical Company. (n.d.). Retrieved from http://www.dow.com BASF Chemical Company. (n.d.) Retrieved from http://www.basf.com DuPont. (n.d.) Retrieved from http://www.dupont.com Vinas, T. (2002, Summer). Best Practices DuPont safety starts at the top. Industry Week, (), Retrieved from http://hhtp:www.industryweek.com/articles/best_practices_---_dupont_safety_starts_at_the_top