Kent Chemical

In: Business and Management

Submitted By dominiqueoyarce
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Case Brief: Kent Chemical 1. What were the problems facing Luis Morales as he began implementing Ben Fisher's international expansion strategy? * One of the main problems Morales had to face was the individualistic position of each subsidiary. Until then, each subsidiary operated as a decentralized federation, but with few or non-connection with an interconnected global strategy. * The entrepreneurial independence of offshores companies complicated the coordination and integration of activities. Allocating capital became more complex as well. * Historically, manager tried to protect their self-interest instead of cooperate with other subsidiaries. * Conflicts between regional structure of international division and product-based structure of subsidiaries. * Subsidiaries did not collaborate with GBD’s

2. How would you evaluate the organizational changes he made in response to those problems? Why were they unsuccessful? * He took many reactive responses, with no clarity about how to organize the company effectively. He went back and forth from trying to implement centralized hubs and then moving to a decentralized federation model where integrating functions was the focus. * He lost credibility with all the changes that seem not work. Moreover, he did not identify the local competences of the organization and its strategic importance in order to take a more logical decision.

3. What do you think of the Sterling Partners recommendations? What did Kent get for the $1.8 million fee? * Again there is not a clear direction toward a strategy. They just identify problems and give some recommendations . * Kent paid $1.8 million fee to get a scanner of the organization. But this, in my opinion, is not enough to raise the sense of a global company at all levels nor sustainable in time since the market is always evolving.…...

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