Strengths
1. Technology leadership and innovation – Advanced process technologies have given them a leadership position in their large Basic Chemicals and Polymers businesses. “For nearly 80 years Union Carbide laboratories have been the source of a steady stream of innovation. Ethylene, ethylene oxide, ethylene glycol and the hundreds of other chemicals that became the building blocks of the chemical industry were developed in their laboratories.” They produce their product very quickly because of their knowledge of technology.
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2. Cost efficiency. Union Carbide Corporation “operates some of the largest, most cost-efficient chemical plants in the world.” Union Carbide Corporation operates two business segments. Specialties & Intermediates converts basic chemicals into a diverse portfolio of chemicals and polymers for industrial customers. The Basic Chemicals & Polymers segment produces chemicals for use by both the Specialties & Intermediates segment and third party customers. Because Union Carbide Corporation does not further process chemicals into specific consumer products, their operations are of bulk scale and allow for planning and timing of production to maintain high efficiency goals.
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3. Joint ventures. Union Carbide Corporation has built a number of joint ventures with foreign corporations. These joint ventures have increased the amount of potential customers in foreign markets, and introducing Union Carbide Corporation to many new international markets. Union Carbide Corporation has formed joint ventures with Petrochemical Industries Company of Kuwait to produce chemicals primarily for Asian markets. They have also formed a joint venture with Enichem of Italy, named Polimeri Europa, which “is poised to become Europe’s lowest-cost polyethylene producer.” These, and other strategic investments and alliances have promoted profitable growth globally.
4. Managerial strategy – “The new human resources policies now reflect shared responsibility with employees for Union Carbide’s success.” Union Carbide Corporation has trimmed its middle level management and implemented “Teams” in every department to facilitate these new policies. Each team member has a voice and is educated in his specific field such that the teams can collaborate on any issues and develop solutions without a Manager. Only decisions that are not supported in existing policies must be further approved. This grants employees a great amount of empowerment and “spares some of the red tape” formerly involved in addressing day to day issues within the chemical plants. “Given more responsibility and encouraged to redesign the way they work, our people slash plant downtime and overtime costs, sharply reduce costly inventories of products and raw materials, simplify organizational structures, eliminate bottlenecks and reduce paperwork.”
“Carbide Lays Out Its Strategy through 1983,” Chemical Week, September 19, 1979, p. 49.
Weaknesses
Mostly environmental issues. The process of making chemicals can be very hazardous to the environment and to the communities that surround them.
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