AkzoNobel consultancy report

Résumé du document

AkzoNobel, once merged from AKZO and Nobel Industries in 1994, is a multinational company which is active in more than 80 countries. It is active in the markets of decorative paints, performance coatings and specialty chemicals and it has recently moved its headquarters from Arnhem to Amsterdam. It employs about 60,000 people all over the world and its sales in 2007 were up to 14 billion. In 2007, AkzoNobel sold Organon Pharmaceutical Business for about 11 billion to Schering-Plough. In 2008, AkzoNobel acquired ICI (Imperial Chemical Industries), one of its main competitors. AkzoNobel is now the world's largest coatings manufacturer, the number one in decorative paints and a leading supplier of specialty chemicals. The question we would like to answer in this report is: How could AkzoNobel achieve to hold or even enlarge this leading position? On April 25th, 2008, AkzoNobel unveiled a new corporate brand and identity. The company created one, distinctive global brand which supports their highly focused strategic vision. The new brand symbolizes the fundamental transformation the organization has undergone during the last few years and the determination of the company to lead change.

Extraits

[...] The Supervisory Board contains four non-executives. We already mentioned that these members have a lot of influence into the decision-making so that will also include the strategic process. Fifthly, Akzo Nobel want to create greater trust and openness which allows greater challenge and dissent and more informal working and better relationships (refer to the quota below). “AkzoNobel promotes a culture of openness, integrity, and reliability.”¹ Sixthly, the company has space for issue spotting and resolutions. This can be proven by the fact that the committee in cooperation with the Supervisory Board will monitor the operations and in particular the Board of management. [...]

[...] Threats The current economic/financial crisis in the USA and Europe (the whole world). When the financial crisis causes an economic slowdown, AkzoNobel is expected to see their sales declining. However of the firm's revenue comes from businesses that are relatively non- cyclical. AkzoNobel sells essential ingredients to food and drink firms, paper-makers, printers, furniture manufacturers etc. These are typically businesses that plough on solidly through recessions. Highly cyclical sectors such as aerospace, agrochemicals and car making comprise a little over 25% of AkzoNobel's sales¹. [...]

[...] Bofors continued as a separate entity. - 1998 Akzo Nobel acquired Courtaulds of the UK, an international chemicals company which had leading positions in high-tech industrial coatings and man-made fibers. EU forced sale of Aeronautical films and sealants businesses to allow completion. - 2006 Akzo Nobel acquired the quoted Canadian Coatings company SICO Inc. - 2008 Akzo Nobel acquired Imperial Chemical Industries plc and rebrands the company to AkzoNobel With all these mergers and acquisitions, AkzoNobel became the large company it is nowadays. [...]

[...] The international strategy can be recognized by the possibility to create value by transferring skills, capabilities and products to local markets. Global strategies, on the other hand, focus on increasing profitability through product standardization, economies of scale and scope and experience effects. The transnational, in contrast, focuses more on capabilities, competences and strategic assets. What strategy does AkzoNobel follow? AkzoNobel follows a global strategy. As the company states itself: ”What does that mean exactly? It means we've changed. We've created one, distinctive global brand which supports our highly focused strategic vision. [...]

[...] Due to the acquisition of ICI, AkzoNobel strengthened their presence in North America. They also strengthened their position in Asia, Brazil and Latin America. combination of ICI's strength in America and Asia, with AkzoNobel's influence in Europe transformed a stolid regional company into a powerful global competitor'¹. Products As mentioned above, AkzoNobel is the world leader in decorative paints and the largest manufacturer of performance coatings. Moreover, it produces some well-known specialty chemicals. Consequently, AkzoNobel produces three types of products, which are: - Decorative Paints: famous brands like Sikkens, Dulux and Flexa are part of AkzoNobel's assortment, along with more than 50 others. [...]