Potential areas enabling continuous improvement
Although it faces a diverse range of challenges, Dow chemical company still has potential areas that can enable it continues with its improvement. Some of the areas include access to new market regions. Expanding the market for the products has been one of the main aims of Dow that would enable it to fulfill its mission of becoming a top world plastic and chemical manufacturing company (Jong et al., 2012). Therefore, the company still has some other potential market areas such as Asia, Middle East, and Africa. Although it has fully adopted the focus strategy, but Dow needs to fully integrate the focus strategy to enable it to concentrate on one particular market. This will enable the business to understand the needs of its customers and deal with them as they change. The focus strategy also allows Dow Company to concentrates on narrow segments that can help improve the quality of products and also performance.
Alternatives for future action and alternative analysis
Dow chemical company has a diverse range of alternatives for its future action performance; however, each of the alternatives may depend on the implementation strategies. Seeking or looking for new challenges is one alternative for the company to improve its performance. This, however, can be achieved by focusing on developing strategies which can enhance its competitive advantage in the market. Another alternative future action includes comparing its products with the leading and competitive companies like ExxonMobil Corporation. Although companies producing the same products consider themselves rivals but this should not be their obstacle from seeking and obtaining crucial information from the other. Therefore, Dow chemical still has a chance to expand and develop by seeking more information in the market by comparing products with other competitors. Again, enhancing public relations can also act as an alternative for the company to improve. The company should be able to establish a good relationship with the members of the public.
Dow chemical company needs to embark on a serious public engagement and consultation so as to create a positive relationship with the members of the public. Public relations play a significant role in the performance of the business. Poor public relations can affect the business performance as the customers come from the public. Therefore, maintaining a good public relation through an effective social responsibility can help Dow increase its profitability. Social responsibility is directly related to profitability; therefore, one cannot isolate one concept from the other.
Dow can achieve this by employing the local residents and also involves them in the decision-making of issues that affect them. Improving the public relations with the organization can also reinforce a positive product’s image which can lead to improved performance through increased market share. Further, Dow chemical can enhance the public relations by improving the share responsibility protocol in the organization. The company should adopt shared responsibility mechanisms that require the participation and actions of other stakeholders such as customers, suppliers, service providers and governmental security organs. Public relations and customer-business relationship can also be achieved through improved leadership commitment. This can be achieved through continuous improvement of senior leadership commitment through policies, provision of adequate and skilled human resources. The company can access and implement the opportunities from the other market regions through improved collaboration between stakeholders such as suppliers and customers; thus, increasing its profitability. Dow further needs to develop and implement security and safety strategies that commensurate the risks facing the organization.
There are various factors or forces that influence the micro-macro-environment of a business organization. However, the response to the forces may determine the success of the business or not. The company can decide to act immediately or later to the forces; however, this may depend on whether the factors are internal or external. Although the external factors cannot be acted upon immediately, but the company should be able to identify the forces with time so as to reduce their impacts on the business performance. Proper and effective management puts into consideration the tools of analysis that can enable them to get the general overview of the organization from different aspects; for example, political/legal, economic, social, and technological aspects. With increased competition due to the emergence of new businesses, Dow faces more threats; therefore, the company should create a more coordinated planning to be able to overcome the incumbent threats. However, the company should adopt the tools such as PESTEL and SWOT to be able to identify the internal and external forces that play a role in the performance of its activities. Again, as it develops and expands its operations to other regions across the world, Dow chemical company needs to an as successful strategy that would give it the competitive advantage in the market. As it grows and moves further to the external market; therefore, Dow still need not to forget the domestic market, as well as other competitive business enterprises, may take this as their opportunity.
Form 10-K (2015). The Dow Chemical Company. United States Securities and Exchange Commission. Retrieved from https://www.sec.gov/Archives/edgar/data/29915/000002991516000066/dow201510k.htm
Form 10-K (2010). The Dow Chemical Company. United States Securities and Exchange Commission. Retrieved from https://www.sec.gov/Archives/edgar/data/29915/000119312511040023/d10k.htm
Jong, E., Higson, A., Walsh, P., & Wellisch, M. (2012). Product developments in the biobased chemicals arena. Biofuels, Bioproducts and Biorefining, 6(6), 606-624.
Marvin, C. (Feb 13, 2009). Dow Chemical Likely Glad Week’s over. The Industrial giant loses legal motion and trims its dividends. The Street. The street. Retrieved from https://www.thestreet.com/story/10464074/1/dow-chemical-likely-glad-weeks-over.html
Tullo, A. (July 27, 2015). Global Top 50 chemical Companies. Failing oil prices led to lower chemical sales but higher profits at the top chemical makers. Engineering News. American Chemical Society. Retrieved from http://cen.acs.org/articles/93/i30/Global-Top-50.html