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Great Lakes: Great Decisions

Essay by   •  July 16, 2012  •  Case Study  •  3,674 Words (15 Pages)  •  1,915 Views

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Introduction

Great Lakes Chemical Corporation is a chemical manufacturing organization established in United States that manufactures a variety of chemical solutions. One of the chemical solutions that Great Lakes manufactures is the contentious lead additive used in gasoline and paint in underdeveloped and developing countries. The company started originally as an oil company that ultimately acquired several other corporations and complemented their oil business with bromine and lead additives. Unfortunately for Great Lakes, the use of leaded gasoline turned out to be illegal in all developed countries. On the other hand, underdeveloped and developing nations are sill heavy users of leaded additives. Also, to satisfy the complaints of the environmentalists, Great Lake might have to stop production of lead additive immediately. However, until developing nations do not acquire enough technology to produce unleaded additive, Great Lakes will be their immediate supplier of leaded additives. So, Great Lakes has the means to aid the underdeveloped and developing nations with their technology to an unleaded experience to them. They also have the means to build a safer environment among nations, but they might do so because of an adverse affect on revenue stream and profitability.

Social/demographic

The different areas of the world that Great Lakes has been entering, will affect its Social and Demographic strategies. In consequence, its future decisions create an effect on innumerous areas of the globe. It is of greater importance that Great Lake takes the right path of decisions based on what is necessary and needed in each area by its residences. In the beginning, Great Lakes was a low-key successful corporation. After the acquisition of Octel and managed by its successful CEO Emerson Kampen, Great Lakes flourished. The social impact was so tremendously that it made the company become an enemy of environmentalists. The mishandling of the lead additive TEL could generate a major impact on the livelihood and welfare of thousands of individuals. Tetraethyl Lead (TEL) and the increase amount of use of leaded gasoline in the world was responsible for air pollution, neurological system complications, hypertensions, and many lead poisoning that was harm to humans' health. Demographically, Great Lakes has been affected through the limitations of helping undeveloped countries which are mostly using TEL. So, there is a need to show how their products can be used in undeveloped countries because of the potential impact on the society's health and the developing regions they service.

Technological

Technology of Great Lakes is an aspect to contain only a few issues. Since Great Lakes has the ability to eliminate the lead additives out of production, their technological issues rely on third party. Lead fuel was not only sold in United States and developed countries, but also in developing and underdeveloped countries as well. The capacity of those countries to switch over the available inventory of car with leaded gasoline to unleaded gasoline is the technological drawback of Great Lakes. Great Lakes has the power to adjust the production on these developing countries, however, this switch would also hurt them economically because the lack of refinery to refine unleaded gasoline. Also, the ability of underdeveloped countries to transport information and Great Lakes products is another technological concern. Getting the information readily available to reach the quantity demanded is critical because the use of technological tools to helps to prevent any shortages that would defer an investment of fuel needs and to establish a pinpoint area which there is a surplus of products that can be managed to another area.

Economics

At the moment, Great Lakes is positioned itself as a world leader in the manufacture of additives for leaded products and control 90% of the market. The probability of submit to environmentalists and their health and safety apprehensions could obstruct Great Lakes' production of additive. The profitability would drop and layoffs might occur for a period of time. On the other hand, there is a forecast to content. The short term of the downturn in the profitability will be offset since Great Lakes has no other competitor in their level. The economy of scale of gasoline will even out which the underdeveloped countries that depend on the additive the most will have a problematic time reaching a constant level of resources as the demand would likely increase. So, underdeveloped countries are not going to have the necessary quantity of supplied leaded gasoline and will not be able to sustain a level of living that they normally do and consequently, get in a deeper economical shortfall. Also, the economical shortfall is going to be sustained when these countries try to import the same amounts they previous afforded. So, Great Lakes is an economically sound business. Their annual revenue was $ 5 billion is 1995. It has been recommended that Great Lakes would assist financially with the transition from lead to unleaded gasoline products. A venture that would reduce the time they would capitalize on the lead products exported to developing countries that they should not partake.

Environmental/Geographical Segments

To do what is consider correct and consequently, to do so in a timely manner. This is a significant challenge that confront environmentally. To satisfy the complaints of the environmentalists, Great Lake might have to stop production of lead additive immediately. Also, if production is just delayed, that will raise major problem with distribution that consequently lower profits and revenues. On the other side, geographically limitations can be way more pitiless. Based in the United States banned production and manufacturing can participate a major position on future globalization. The production and exportation in other countries that are already served with lead products might be a not so effective strategy to take, because the environmentalists' involvement in developed countries will take manufacturing affects on Great Lakes. These countries might not as strict environmental policies as United States they likely would not wish to confront protest of a new industry in their country. So, the pressure on Great Lakes from research done in late 60s that showed major causes of brain damage in children and health issues in adults, the production of TEL will cease. Potential public relations crisis and the discontinuation of TEL manufacturing in develop and underdeveloped countries can be costly and inevitable.

Political/Legal/Governmental

The truth of the matter is that Great Lakes faces

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