2008-11-12

Group B5Emma Jacobsén, Mia Hertzberg, Sergio Montano

Axeon study caseAxeon study caseQuestion 1:

◦Thorough analysis◦Feasible business idea◦Might be too optimistic market

potential◦Underestimated competition◦Ian’s personal benefit

2008-11-12

Group B5Emma Jacobsén, Mia Hertzberg, Sergio Montano

Axeon study caseAxeon study caseQuestion 2:

◦Two answers to this question: Not be beneficial for Axeon to build factory

Probable over estimated market Longer time than the seven years

Ian forecasted to pay back for the plant and gain profit

Knowledge of the productions is established in the Netherlands

Beneficial for Axeon to build factory Ian’s calculations are correct Possible to expand production and sales

geographically More even distribution of sales

2008-11-12

Group B5Emma Jacobsén, Mia Hertzberg, Sergio Montano

Axeon study caseAxeon study caseQuestion 3:

◦CEO had objective view of the situation. Let Ian and the Dutch Operation crew to

debate the subject

◦The CEO must consider what is best for the company.

◦If the CEO would have interfered Remove responsibility Undermine

2008-11-12

Group B5Emma Jacobsén, Mia Hertzberg, Sergio Montano

Axeon study caseAxeon study caseQuestion 4:

◦Full-cost transfer prices plus a mark up 20% could be used Dutch Operation can recover the full cost of

production Easy to implement A drawback => changes in the market

◦Reasons why other transfer price methods do not fit this case Market based transfer prices Marginal cost transfer prices Negotiated transfer prices

2008-11-12

Group B5Emma Jacobsén, Mia Hertzberg, Sergio Montano

Axeon study caseAxeon study caseQuestion 5:

◦Decentralized top-level management ◦Result control by bonus plans and

rewards Could lead to that the subsidiary

managers only concentrate on their own sales

◦Expanding by acquiring foreign companies Expertise Grasp market

2008-11-12

Group B5Emma Jacobsén, Mia Hertzberg, Sergio Montano

Axeon study caseAxeon study caseQuestion 6: The critical success factors

◦Keeping managers after acquisition, geographical expertise.

◦Subsidiary managers have great influence and responsibility in their own market.

◦Bonus and reward systems that motivates the top-level management.

◦R&D of chemical products to be leading in the market.

◦Personal control in the form of recruiting good engineers and provide them right resources.

2008-11-12

Group B5Emma Jacobsén, Mia Hertzberg, Sergio Montano

Axeon study caseAxeon study caseQuestion 7: KRA

◦ Production, highly routinized activities e.g. in the production line.

◦ Sales of products.◦ Recruiting new appropriate personnel for the

company standards.◦ Management such as problem solving, team building,

personal development etc.◦ Training staff to have best possible knowledge and

make sure the company’s objectives. ◦ Board meetings to establish the vision and the

mission.◦ R&D to improve current products and develop new

ones.◦ Other KRA that need to be handled are lack of

direction, lack of motivation and personal limitations.

2008-11-12

Group B5Emma Jacobsén, Mia Hertzberg, Sergio Montano

Axeon study caseAxeon study caseQuestion 8:

◦Decentralized top level management Subsidiary managers have the ability to

make their own decisions Subsidiary managers have the capability

to develop new factories if profitable

◦Centralized below top level management Overarching decisions

2008-11-12

Group B5Emma Jacobsén, Mia Hertzberg, Sergio Montano

Axeon study caseAxeon study caseQuestion 9:

◦Try out the U.K. market Exporting AR-42 from the Netherlands Confirm the demand This strategy will provide an insight

◦Train Hollandsworth’s engineers