Case Study on Erp
Case Development Report for Celanese AG
Group Assignment
Contents
Contents 3
Introduction 4
Industry Understanding – Michel Porter's five forces Model 4
Value Chain Analysis 6
How important is Celanese’s centralized enterprise system to its business strategy?
Why? What is its business value to the company?.....................................................................9
How successful was Celanese in meeting these challenges? What problems did it solve? How? Which problems remained unsolved?.............................12
What management, organization, and technology challenges did Celanese face as it tried to implement One SAP? Which were the most difficult?.............................................................14
Introduction to the Company
Celanese AG is a global producer of value-added industrial chemicals. They are one of the leaders in their product areas; Celanese has the leading position in producing acetyl products and engineered polymers. Their products are manufactured in North America, Europe and Asia. In 2006 Celanese net sales went up from 1,471 million USD to 1,573 million USD while their operating profit decreased by 15 percent from 172 million USD to 147 million USD which is due to an overall increase in many other charges and also a loss in sales which is related to AT Plastics Films Business.
Industry Understanding
Michel Porter’s Five Forces Model
* Bargaining Power of Suppliers
Suppliers could be a danger for the industry if they threaten the companies to increase the prices for products and services. Therefore suppliers could reduce the profitability of an industry, because the increase of the prices couldn’t be moved over to the markets. The bargaining of the supplier in the chemical industry and therefore for Celanese give the impressions to be moderate because they are concentrated. * Bargaining Power of Customers
The Customers have the power to cut the prices or request better
Group Assignment
Contents
Contents 3
Introduction 4
Industry Understanding – Michel Porter's five forces Model 4
Value Chain Analysis 6
How important is Celanese’s centralized enterprise system to its business strategy?
Why? What is its business value to the company?.....................................................................9
How successful was Celanese in meeting these challenges? What problems did it solve? How? Which problems remained unsolved?.............................12
What management, organization, and technology challenges did Celanese face as it tried to implement One SAP? Which were the most difficult?.............................................................14
Introduction to the Company
Celanese AG is a global producer of value-added industrial chemicals. They are one of the leaders in their product areas; Celanese has the leading position in producing acetyl products and engineered polymers. Their products are manufactured in North America, Europe and Asia. In 2006 Celanese net sales went up from 1,471 million USD to 1,573 million USD while their operating profit decreased by 15 percent from 172 million USD to 147 million USD which is due to an overall increase in many other charges and also a loss in sales which is related to AT Plastics Films Business.
Industry Understanding
Michel Porter’s Five Forces Model
* Bargaining Power of Suppliers
Suppliers could be a danger for the industry if they threaten the companies to increase the prices for products and services. Therefore suppliers could reduce the profitability of an industry, because the increase of the prices couldn’t be moved over to the markets. The bargaining of the supplier in the chemical industry and therefore for Celanese give the impressions to be moderate because they are concentrated. * Bargaining Power of Customers
The Customers have the power to cut the prices or request better