Dutch Chemical
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AXEON N.V. |
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Case Analysis |
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AXEON N.V. |
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Case Analysis |
Table of Contents
Axeon N.V Overview 2
SITUATION ANALYSIS 2
ENVIRONMENTAL ANALYSIS 3
EXTERNAL SIZE UP 3
INTERNAL SIZE UP 3
ISSUE DESCRIPTION 3
SWOT ANALYSIS FOR NEW FACTORY 5
FINANCIAL ANALYSIS 6
Manufacture product in UK 6
Manufacture product in Netherlands 7
ALTERNATIVE 1: 8
Build the manufacturing plant in U.K. 8
ALTERNATIVE 2: 9
Manufacture more product in Netherland and sale it to cost to Hollandsworth 9
RECOMMENDATION 10
QUESTIONS 11
QUESTION #1 11
QUESTION #1b 11
QUESTION #1c 11
QUESTION #2 12
EXHIBITS 13
AXEON N.V.
Case Analysis
Axeon N.V Overview
Axeon N.V. is a producer of industrial chemicals with 24 manufactory sites around Europe, and headquarters in Heerlen, Netherlands. It has acquired several companies within Europe to facilitate regional market penetration. By 1996 total sales from each subsidiary is shown in the table below.
Company Name | Location | Total Axeon’s sales (%) | Total revenues |
Axeon | Netherlands | 72% | £823 MM |
Saraceno | Italy | 8% | £91 MM |
Hollandsworth | United Kingdom | 14% | £160 MM |
KAG | Sweden | 6% | £69 MM |
As determined through Axeon’s management philosophy, Axeon is a decentralized organization where the subsidiaries are empowered to make decisions on what to sell in their respective regions.
SITUATION ANALYSIS
Anton van Leuven, Managing Director of Axeon N.V., was faced with a difficult decision. He received an investment proposal from Ian Wallingford, Managing Director of Hollandsworth, Ltd one of Axeon’s subsidiaries in Europe. The proposal was to build a new manufacturing plant in the UK to produce AR-42; a product that Axeon sells through Europe but not yet in the U.K.
ENVIRONMENTAL ANALYSIS
EXTERNAL SIZE UP
During 1998, the world was going through a global financial crisis due to the Asian markets crisis., by October, when Anton Van Leuven was determining next steps, , the crisis had begin to subside and was starting to show
AXEON N.V. |
|
Case Analysis |
R |
AXEON N.V. |
|
Case Analysis |
Table of Contents
Axeon N.V Overview 2
SITUATION ANALYSIS 2
ENVIRONMENTAL ANALYSIS 3
EXTERNAL SIZE UP 3
INTERNAL SIZE UP 3
ISSUE DESCRIPTION 3
SWOT ANALYSIS FOR NEW FACTORY 5
FINANCIAL ANALYSIS 6
Manufacture product in UK 6
Manufacture product in Netherlands 7
ALTERNATIVE 1: 8
Build the manufacturing plant in U.K. 8
ALTERNATIVE 2: 9
Manufacture more product in Netherland and sale it to cost to Hollandsworth 9
RECOMMENDATION 10
QUESTIONS 11
QUESTION #1 11
QUESTION #1b 11
QUESTION #1c 11
QUESTION #2 12
EXHIBITS 13
AXEON N.V.
Case Analysis
Axeon N.V Overview
Axeon N.V. is a producer of industrial chemicals with 24 manufactory sites around Europe, and headquarters in Heerlen, Netherlands. It has acquired several companies within Europe to facilitate regional market penetration. By 1996 total sales from each subsidiary is shown in the table below.
Company Name | Location | Total Axeon’s sales (%) | Total revenues |
Axeon | Netherlands | 72% | £823 MM |
Saraceno | Italy | 8% | £91 MM |
Hollandsworth | United Kingdom | 14% | £160 MM |
KAG | Sweden | 6% | £69 MM |
As determined through Axeon’s management philosophy, Axeon is a decentralized organization where the subsidiaries are empowered to make decisions on what to sell in their respective regions.
SITUATION ANALYSIS
Anton van Leuven, Managing Director of Axeon N.V., was faced with a difficult decision. He received an investment proposal from Ian Wallingford, Managing Director of Hollandsworth, Ltd one of Axeon’s subsidiaries in Europe. The proposal was to build a new manufacturing plant in the UK to produce AR-42; a product that Axeon sells through Europe but not yet in the U.K.
ENVIRONMENTAL ANALYSIS
EXTERNAL SIZE UP
During 1998, the world was going through a global financial crisis due to the Asian markets crisis., by October, when Anton Van Leuven was determining next steps, , the crisis had begin to subside and was starting to show