Rohm & Hass strategic management plan criticism

Résumé du document

On September 1st, 1907 the company Rohm & Haas was born. Today it is a U.S. multinational company based in Philadelphia, Pennsylvania, and is one of the world leaders in specialty chemicals. It is a major manufacturer of specialty materials that defies conventional thinking through innovation and flexibility for a constantly changing market. This is a result-oriented company, dedicated to supporting and expanding its international base of customers, suppliers, employees and communities through innovation in areas such as science, business, and services. Rohm & Haas (HR) obtained good results in this sector because they understood the importance of projecting the future on such a market. A number of research and development projects are there to prove the desire to innovate. Indeed investment in R & D has almost doubled since 1997 (from $ 147 million to $ 280 million) and the share for new products and technologies has increased (from 11% to 42%). Innovation is paramount and they understood this trend.

Extraits

[...] That is why, faced with a changing environment, Rohm and Haas decided to change its strategic direction to achieve the best arrangements for the coming years. The new plan involves significant changes that will have an impact on the organization of the business across all business and all regions of the world. In the late 9O's, the company had implemented a new strategy in order to deal with problems within the company and with the chemical industry in general. Between 1999 and 2000, Rohm and Haas has made major repositioning of its portfolio including conducting nearly 40 transactions totaling approximately billion in acquisition and $ 1.5 billion in disposal of fixed assets. [...]

[...] And with the new plan of re-organization, Rohm and Haas wants to optimize its process and productivity to produce stronger profits and increased efficiency. This standardization will also allow better collaboration and cooperation between the various subsidiaries worldwide. The global strategic choice may be more easily and quickly implemented. This strategy is based on strong corporate culture that inculcates precepts and strong values to all employees. This has strengthened the feeling of belonging to the same company and therefore productivity. The results continue to demonstrate the booming of Rohm and Haas. [...]

[...] To do this, they encourage their employees in different ways. They use the “determination of objectives, assessment, development, performance and reward” technique First they use the possibility of upward mobility for their employees to motivate them to get promotions in their lives in Enterprise. In terms of wages, employees have: - A very competitive and motivating salary according to their posts - A variable salary based on their performance and achievement of objectives No personal performance o Group performance o Corporate Performance: profitability Moreover employees are eligible to receive stock options of the Company. [...]

[...] Today, it has very satisfactory and sufficient cash for future investments. By demonstrating strong response during its past, Rohm and Haas has gained a high level of credibility from thee point of view of investors and financial markets. The reputation of the company is now excellent with customers and suppliers. It has always had the support of the Board, shareholders and the Haas family. Strategic Managment Page 4 of The new strategy "Vision 2010" The Society environment is constantly changing and new opportunities appearing on various businesses, Rohm and Haas must therefore constantly adapt to these new data in order to maintain growth. [...]

[...] You can also add that the change in debt is negative. Rohm and Haas has an excellent economic health. And investors were not mistaken as the share is rising. Share value To reward the confidence of investors and invite them to keep their shares over the long term, Rohm and Haas has a policy of redistribution of benefits to its shareholders. (in billions) Dividends Strategic Managment Page 11 of - The "21st Century Manufacturing” A major objective of the new strategy "Vision 2010" is operational excellence. [...]