INTERNATIONAL BUSINESS
SUBJECT: IB WORKSHOP
TEACHER: ENRIQUE CEBALLOS ALEXIS
STUDENT: LARIZA VALERIA CHONG FLORES
KENT CHEMICAL: ORGANIZING FOR INTERNATIONAL GROWTH
KENT CHEMICAL: ORGANIZING FOR INTERNATIONAL GROWTH
Kent Chemical was a rubber producer which founded in 1917 in Kent, Ohio.
In the 1940s, as turned into the plastics, Kent quickly grew to be one of the biggest producers and marketers of plastic additives and other specialty chemicals. Later, in the 2000s, Kent became a worldwide specialty-chemical company, whose products sold in nearly 100 countries.
Kent's products can be mainly divided into three parts. The first one is the consumer products; the second one is the fire protection products; the third one is the medical plastics. This company was very successful at first. But same as the other companies they faced some problems.
Firstly, when the international business grew, the company leader Morales realized that his company was not very good at changing pressures and demands.
Secondly, Morales worried about the "self-protection" of the overseas subsidiaries' managers as they have a long history of independence.
Thirdly, Morales concerned about the regional organization cannot deal with the coordinating issues of global implications. In order to get through all these problems, Kent started to find the way out. Like nominating three directors to smooth communication, which called the GBD. As a result, the GBD failed. There are several reasons, such as lack of local knowledge, communication problems and interfering the local operations. After that, Kent asked a worldwide management conculting firm to help them find the solution. The consumer product line was to localize the marketing programs to give a feed back to the consumer needs; the medical plastics business needed global control; the fire control products were between the two other businesses, they should use both the local way and the global way.
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