IB Group B Essay 2 Rasmus Nybond
Rasmus Nybond
S137611
rasmus.nybond@hotmail.com seminar group B
Kent Chemical: Organizing for International Growth
Kent is a leading chemical company that operates on a global scale. KCP (Kent Chemical Products) has evolved from a company operating on the domestic market, to a company operating globally on several continents. The companys top priority was changed in 1998 by the CEO Ben Fisher. The new priority was to expand globally, ”Our new goal is to remake Kent from a U.S. company dabbling in international markets to one that developes, manufactures and sells worldwide”. This new priority proved to be more difficult to implement than expected. One of the challenges that proved most difficult was to coordinate the international operations with the domestic core operations.
To operate in several different markets involves organizational challenges. One problematic event was to coordinate the operations between the KCP and KCI (Kent Chemical International). The lack of communcation between the international and the domestical companies was one problem, as well as the differences between different markets. To maintain a continued positive development the barriers between divisions had to be erased.
As head of the international division, Luis Morales should focus on improving the communcation between the domestic and the international companies. Kent's weak influence (due to minority shareholds) on the joint ventures and subsidiaries overseas made the organizational process even more complicated. Even after Kent become majority owner it proved difficult to exercise controll. Another obstacle for global integration was that markets abroad differed significantly from each other. Mainly by various regulations concerning products but aslo in political, cultural, economical and leagal aspects. These aspects can either raise or lower the cost of doing business. (Hill, 2011)
This meant that each product had to be manufactured seperately denpeding on which geographic
S137611
rasmus.nybond@hotmail.com seminar group B
Kent Chemical: Organizing for International Growth
Kent is a leading chemical company that operates on a global scale. KCP (Kent Chemical Products) has evolved from a company operating on the domestic market, to a company operating globally on several continents. The companys top priority was changed in 1998 by the CEO Ben Fisher. The new priority was to expand globally, ”Our new goal is to remake Kent from a U.S. company dabbling in international markets to one that developes, manufactures and sells worldwide”. This new priority proved to be more difficult to implement than expected. One of the challenges that proved most difficult was to coordinate the international operations with the domestic core operations.
To operate in several different markets involves organizational challenges. One problematic event was to coordinate the operations between the KCP and KCI (Kent Chemical International). The lack of communcation between the international and the domestical companies was one problem, as well as the differences between different markets. To maintain a continued positive development the barriers between divisions had to be erased.
As head of the international division, Luis Morales should focus on improving the communcation between the domestic and the international companies. Kent's weak influence (due to minority shareholds) on the joint ventures and subsidiaries overseas made the organizational process even more complicated. Even after Kent become majority owner it proved difficult to exercise controll. Another obstacle for global integration was that markets abroad differed significantly from each other. Mainly by various regulations concerning products but aslo in political, cultural, economical and leagal aspects. These aspects can either raise or lower the cost of doing business. (Hill, 2011)
This meant that each product had to be manufactured seperately denpeding on which geographic