GREAT LAKES: GREAT DECISIONS

Great Lakes: Great Decisions

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Great Lakes: Great Decisions

The Great Lakes chemical corporation has been experiencing several factors that affect their overall performance and affects the environment in diverse ways. The industry has been receiving pressure for quite sometimes worldwide to stop manufacturing of lead additives. This is because of the negative impacts on social /demographic sector together with environmental sector. This pressure is coming from the politicians, the government and environmentalist thus affecting the general performance of the company. The company believes that incase they change from producing lead additive, their profits will be reduced as well as impact those developing countries which have not moved to use of unleaded gasoline.

Perform an analysis of the Social/Demographic, Technological, Economic, Environmental/Geographic, and Political/Legal/Governmental segments to understand the general environment facing Great Lakes. Describe how Great Lakes will be affected by each of these external factors.

Socially, it will affect different social and demographic areas especially on how different cultures use the products and the way it affects their health and safety. Under-developing countries are the most countries that will be affected because of using the tetraethyl lead. The technology would not be the issues that will really affect the Great Lakes but the issue is that the underdeveloped countries may not be able to produce unleaded gasoline. This will affect the Great Lakes in case the countries in which it does its business moves from using leaded gas to unleaded gasoline. However, if the United States will work in conjunction with the underdeveloped countries, they may be in apposition of helping the Great Lakes region including the underdeveloped countries. Consequently, the Great Lakes will be affected economically. This is because they will be forced to discontinue or limit their production and this will lead to reduction in profitability for a short-run but eventually they will perform better in the end (Hax and Wilde, 2002).

The environmental issues that the Great Lakes are facing are so challenging. The leaded gas was banned in the United States because of its negative effect on the environment. Therefore, the environmentalists have placed tough regulations, which are challenging and they have insisted on discontinuation of lead manufacturing additives by this company. Up to date, the great lakes have not yet yielded the demands of products. This is because of the negative impacts that may arise and the effects that may result to their customer who have not yet moved to use of unleaded gas for their vehicles. In addition, the political/legal/government sectors will affect this company because of laws that may be passed in restricting of lead additives. Due to pressure from the government and political leaders, many companies stopped producing lead additives. However, this company may not be in a position of maximizing profits because of the legal actions such as high governmental tax and increased emission cost that would be levied on them.

Analyze the lead additives industry in the U.S. using the Five Forces of Competition Model. Describe the impact of each of the five forces on the industry and based on this analysis, determine if the industry is attractive or unattractive.

            Porter’s model have played an essential role in the lead additives industry in the U.S. however, this models have led to negative effects on the industry making it to be termed unattractive. First, the threat of new entrants’ model drives the prices down and introduces stiff penalty phrases making the industry to be unproductive. Another model is an industry rivalry, which is too high. Price competition is rampart making the industry to reduce costs thus the industry would be unable the meet their production costs. In addition, bargaining power of suppliers’ model is too high. This may lead to rapid technology change forcing the industry to adapt to those new technological changes, which may be quite challenging. Bargaining power of buyers’ model, which is also high. The clients may play as a service provider over another hence driving prices down thus the may not make adequate profits (Ireland, Hoskisson and Hitt, 2011). Lastly, threat substitute’s model may have an impact on the industry since all players may provide similar substitutes that are similar hence making the company to reduce the cost of products.

Describe who Great Lakes’ immediate, impending, and invisible competitors are and how Great Lakes measures up against these competitors.

The governmental agencies and environmentalists may be termed as the immediate, impeding and invisible competitors because of their harsh laws and legal magnitudes towards this company. They company is subjected to diverse policies related to maintaining and protecting the environmental quality around them which are quite costly. The Great Lakes measures up against these competitors through carrying out research and analyzing their performance by use of SWOT analysis (Jeffs, 2008). For instance, they have tried to maintain the reputation of the company through complying with the government and environmental laws governing required production. They strive to be the leader in the manufacturing of their products through carrying out an assessment of internal and external factors that are favorable in their production.

Describe the main capabilities of Great Lakes

The main capabilities of the Great Lakes are that they have the stronghold on the lead additive production. They carry out research and they monitor their production in order to make a change in the market place and the global world. They placed a great deal in the well-being of their stakeholders and shareholders thus continue to remain a realistic company. Another capability of the company is the research carried out on non-hazardous environmental products. This has led to the company achieving competitive market and continuing to produce their products for their clientele from developing countries. Consequently, they keep on analyzing the internal and external factors especially their competitors, suppliers and the governments. By conducting SWOT analysis and use of the Porters’ five forces model, they are able to foresee future and even define competitive position as well as evaluating their capabilities that keeps them in the business (Venter, Hough, Neuland, Erwee and De, 2007).

 

References

Hax, A. C. and Wilde, D. L. (2002). The Delta Model – Toward a Unified Framework of

Strategy. MIT Sloan Working Paper No.4261-02.

Ireland, D.R, Hoskisson, R.E., & Hitt, A.M. (2011). Understanding Business

            Strategy: Concepts and Cases. Coos Bay, OR: South-Western Pub.

Jeffs, C. (2008). Strategic management. Los Angeles: SAGE.

Venter, D. J., Hough, J., Neuland, E. W., Erwee, R., & De, L. R. (2007). Global business:

            Environments and strategies. Cape Town: Oxford University Press Southern Africa.

 

Great Lakes: Great Decisions

Name:

Course:

Lecturer:

Date:

Great Lakes: Great Decisions

The Great Lakes chemical corporation has been experiencing several factors that affect their overall performance and affects the environment in diverse ways. The industry has been receiving pressure for quite sometimes worldwide to stop manufacturing of lead additives. This is because of the negative impacts on social /demographic sector together with environmental sector. This pressure is coming from the politicians, the government and environmentalist thus affecting the general performance of the company. The company believes that incase they change from producing lead additive, their profits will be reduced as well as impact those developing countries which have not moved to use of unleaded gasoline.

Perform an analysis of the Social/Demographic, Technological, Economic, Environmental/Geographic, and Political/Legal/Governmental segments to understand the general environment facing Great Lakes. Describe how Great Lakes will be affected by each of these external factors.

Socially, it will affect different social and demographic areas especially on how different cultures use the products and the way it affects their health and safety. Under-developing countries are the most countries that will be affected because of using the tetraethyl lead. The technology would not be the issues that will really affect the Great Lakes but the issue is that the underdeveloped countries may not be able to produce unleaded gasoline. This will affect the Great Lakes incase the countries in which it does its business moves from using leaded gas to unleaded gasoline. However, if the United States will work in conjunction with the underdeveloped countries, they may be in apposition of helping the Great Lakes region including the underdeveloped countries. Consequently, the Great Lakes will be affected economically. This is because they will be forced to discontinue or limit their production and this will lead to reduction in profitability for a short-run but eventually they will perform better in the end (Hax and Wilde, 2002).

The environmental issues that the Great Lakes are facing are so challenging. The leaded gas was banned in the United States because of its negative effect on the environment. Therefore, the environmentalists have placed tough regulations, which are challenging and they have insisted on discontinuation of lead manufacturing additives by this company. Up to date, the great lakes have not yet yielded the demands of products. This is because of the negative impacts that may arise and the effects that may result to their customer who have not yet moved to use of unleaded gas for their vehicles. In addition, the political/legal/government sectors will affect this company because of laws that may be passed in restricting of lead additives. Due to pressure from the government and political leaders, many companies stopped producing lead additives. However, this company may not be in a position of maximizing profits because of the legal actions such as high governmental tax and increased emission cost that would be levied on them.

Analyze the lead additives industry in the U.S. using the Five Forces of Competition Model. Describe the impact of each of the five forces on the industry and based on this analysis, determine if the industry is attractive or unattractive.

            Porter’s model have played an essential role in the lead additives industry in the U.S. however, this models have led to negative effects on the industry making it to be termed unattractive. First, the threat of new entrants’ model drives the prices down and introduces stiff penalty phrases making the industry to be unproductive. Another model is an industry rivalry, which is too high. Price competition is rampart making the industry to reduce costs thus the industry would be unable the meet their production costs. In addition, bargaining power of suppliers’ model is too high. This may lead to rapid technology change forcing the industry to adapt to those new technological changes, which may be quite challenging. Bargaining power of buyers’ model, which is also high. The clients may play as a service provider over another hence driving prices down thus the may not make adequate profits (Ireland, Hoskisson and Hitt, 2011). Lastly, threat substitute’s model may have an impact on the industry since all players may provide similar substitutes that are similar hence making the company to reduce the cost of products.

Describe who Great Lakes’ immediate, impending, and invisible competitors are and how Great Lakes measures up against these competitors.

The governmental agencies and environmentalists may be termed as the immediate, impeding and invisible competitors because of their harsh laws and legal magnitudes towards this company. They company is subjected to diverse policies related to maintaining and protecting the environmental quality around them which are quite costly. The Great Lakes measures up against these competitors through carrying out research and analyzing their performance by use of SWOT analysis (Jeffs, 2008). For instance, they have tried to maintain the reputation of the company through complying with the government and environmental laws governing required production. They strive to be the leader in the manufacturing of their products through carrying out an assessment of internal and external factors that are favorable in their production.

Describe the main capabilities of Great Lakes

The main capabilities of the Great Lakes are that they have the stronghold on the lead additive production. They carry out research and they monitor their production in order to make a change in the market place and the global world. They placed a great deal in the well-being of their stakeholders and shareholders thus continue to remain a realistic company. Another capability of the company is the research carried out on non-hazardous environmental products. This has led to the company achieving competitive market and continuing to produce their products for their clientele from developing countries. Consequently, they keep on analyzing the internal and external factors especially their competitors, suppliers and the governments. By conducting SWOT analysis and use of the Porters’ five forces model, they are able to foresee future and even define competitive position as well as evaluating their capabilities that keeps them in the business (Venter, Hough, Neuland, Erwee and De, 2007).

 

References

Hax, A. C. and Wilde, D. L. (2002). The Delta Model – Toward a Unified Framework of

Strategy. MIT Sloan Working Paper No.4261-02.

Ireland, D.R, Hoskisson, R.E., & Hitt, A.M. (2011). Understanding Business

            Strategy: Concepts and Cases. Coos Bay, OR: South-Western Pub.

Jeffs, C. (2008). Strategic management. Los Angeles: SAGE.

Venter, D. J., Hough, J., Neuland, E. W., Erwee, R., & De, L. R. (2007). Global business:

            Environments and strategies. Cape Town: Oxford University Press Southern Africa.

 

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