Bayer MaterialScience (A): Opportunities in Global Value Chains
By
Klaus Meyer
Bayer MaterialScience, a unit of Bayer AG, was a leading provider of polycarbonate, a basic material for plastics. In response to the changes in its client industries, Bayer MaterialScience relocated the business unit headquarters for polycarbonate to Shanghai in order to be closer to customers and other business partners in the Asia-Pacific. Bayer MaterialScience (A) focuses on the laptop industry, where a large number of players influence the selection of material suppliers. Bayer MaterialScience has to re-evaluate its market intelligence and its business-to-business marketing in view of changing global competition. Bayer MaterialScience (B) provides insights into the consequences of relocating a division headquarters to China, and introduces the forthcoming initial public offering of Bayer MaterialScience. The company has to assess how to further develop its organizational structure, its partner relationships, and its industrial marketing strategy under a new brand name; Covestro.
Collection: Ivey Business School (Canada)
Ref: IVEY-9B15M109-E
Format: PDF
Number of pages: 19
Publication Date: Dec 21, 2015
Language: English
Review date: Dec 17, 2015
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Description
Bayer MaterialScience, a unit of Bayer AG, was a leading provider of polycarbonate, a basic material for plastics. In response to the changes in its client industries, Bayer MaterialScience relocated the business unit headquarters for polycarbonate to Shanghai in order to be closer to customers and other business partners in the Asia-Pacific. Bayer MaterialScience (A) focuses on the laptop industry, where a large number of players influence the selection of material suppliers. Bayer MaterialScience has to re-evaluate its market intelligence and its business-to-business marketing in view of changing global competition. Bayer MaterialScience (B) provides insights into the consequences of relocating a division headquarters to China, and introduces the forthcoming initial public offering of Bayer MaterialScience. The company has to assess how to further develop its organizational structure, its partner relationships, and its industrial marketing strategy under a new brand name; Covestro.
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Year: 2014
Geographic Setting: China, Germany
Industry Setting: Manufacturing;
Learning Objective
With respect to strategic decision making and the design of organizational structures to support these decisions, instructors may emphasize a subset of the following learning objectives: ·To appreciate the challenges of industries at the maturity stage of the industrial life cycle. ·To identify the sources of commoditization pressures and develop strategies to deal with them. ·To develop organizational structures that enable client-oriented strategies. ·To analyze the impact of changes in environmental regulation on indirectly affected businesses. ·To review and critically evaluate the tools of industry analysis (Porter’s Value Chain, Porter’s Five Forces framework, etc.).
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