Kent Chemical Solution

CASE: KENT CHEMICAL

PRESENTED BY – NEIL JOSHI

DESIGNING AND MANAGING INTERNATIONAL ORGANIZATIONS

OTMT618

 10/30/2017

Three of the six Kent Chemical businesses have significant multi-country sales; how would you characterize each of them based on the assigned Bartlett readings: Global, Multinational, International, or Transnational? Choose only one for each of the businesses below and explain briefly your choice:

1. The Consumer Products Division?
2. Fire Protection Products?
3. Medical Plastics?  

Based on the Bartlett readings, we can classify the three business divisions into Global, Multinational, International or Transnational companies.

Consumer Products Division – Multinational Corporation

To be categorized as a Multinational Corporation, a company needs to adopt based on the requirements of different nation markets. Based on the readings, I feel we can categorize the consumer products division as a Multinational Corporation based on following points:

• After leading the US market in the de-greasing industry, KCP expanded into various specially formulated products. In US, independent retailers and buying groups in the hardware & do-it-yourself sections were the primary distributors.
• For example, KCP sold in Brazil through distributors and small independent outlets. In France, they used a direct sales force sold to national chains. KCP had to prepare different responses for different markets.
• To cater to different market changes, KCP has production plants in various countries.

Fire Protection Products – Multinational Corporation

To be called a Multinational Corporation, it should be adept in different markets. Based on my understanding, I feel we can categorize the Fire Protection Products as a Multinational Corporation based on the following points.

• The solidify its position in the fire protection industry, KCP not only had production plants in US but also in four plants outside of US to cater for their biggest international markets.
• Diversification of the production plants, gave KCP the advantage to customize the products based on market demands.
• This method helped them to lower the manufacturing costs in a price sensitive market.

Medical Plastics – International Corporation

To categorize the Medical Plastics division as an International Corporation, the parent company needs to exploit its knowledge and capabilities through worldwide diffusion and adoption. We can categorize the Medical Plastics division of KPC as an International Corporation based on course readings.

• KCP’s collaboration led to the development of non-leaching sterilizable plastic to hold intravenous fluids.
• It leveraged this success and worked in partnership with various medical device companies to develop specialized plastics for different applications.
• KCP exploited its R&D labs and its specialized plants in California and Netherlands to become a market leader.