Sustainable Solutions Paper - DDBA 8160 - Long, T

8/11/2019 Sustainable Solutions Paper - DDBA 8160 - Long, T

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Sustainable Solutions Paper

Terry D. Long

DBA Strategy

Dr. Richard Snyder

August 28, 21!


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Sustainable Solutions Paper

The constant changing o" the paint industry cli#ate de#ands that so#e inno$ati$e

technologies to be de$eloped by participating co#panies. Sher%in&'illia#s (S)'* has been a

"ore&runner in the paint industry "or o$er a century. The de$elop#ent o" technology has helped

the co#pany e+ecute %ell in"or#ed decisions #ore than e$er be"ore. )o% %ill S)' use current

products and technologies to assist %ith their $arious business units beco#e #ore e""icient and

operate e""ecti$ely The e+pansion o" S)' %ill depend on its custo#er ser$ice, product

de$elop#ent, and its e+ecuti$e #anage#ent tea#. The purpose o" this paper is to create a

sustainable solution in %hich the co#pany can in$estigate the strategies suggested to help the#

de$elop their present $alue added ser$ices %ithin their business units during the ne+t century.

The #a-or "ocal points o" this paper %ill include an e+ecuti$e su##ary, an analytical

loo into the current strategies using di""erent tools such as a S'/T and Porter0s "i$e "orces

analysis. The "i$e "orce analysis %ill deter#ine e+ternal e$ents that can ha$e a direct i#pact on

ho% they conduct business. A general "orces analysis %ill e+a#ine the local en$iron#ent and

ho% it plays a signi"icant part o" their gro%th. The S'/T analysis %ill shed light on the

strengths, %eanesses, opportunities, and threats o" the organiation. This report %ill also

e+a#ine the current S)' strategy and its align#ent to the $ision o" the co#pany. A "itness

landscape analysis %ill be prepared to assess the $alue o" the co#pany, industry and opti#ality.

A Boids analysis e+a#ining business beha$ior %ill be co$ered in detail. The industry e$olution

#odeling %ill be "ollo%ed by a li"e cycle and sustainable $alue analysis. The paper %ill co#e to

a close %ith conclusions based on the #aterial presented throughout the paper.


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Executive Summary

Sher%in&'illia#s is in a uniue seg#ent o" the specialty che#icals #aret. The paint

#aret has e+isted "or centuries and has seen #any co#panies co#e and go. Sher%in&'illia#s

has been around "or o$er 1 years and has been an industry leader %hen it co#es to colors,

paints, adhesi$es, and coatings. The "ollo%ing sustainable solutions paper %ill "ocus on the

e+ternal "orces that %ill a""ect the en$iron#ent in %hich they operate. Their strengths and

%eanesses %ill be discussed in detail. The threats and opportunities %ill be care"ully e+a#ined.

Although a strategy should be e$ident throughout the paper, it %ill highlight the

e""ecti$eness o" their current strategy. 3t is a $ery e""ecti$e strategy, but could use #inor

ad-ust#ents as technology has changed the en$iron#ent in %hich they operate. Senior

#anage#ent %ill ha$e to charge #ore authority to "ront&line #anagers as they are dealing

directly %ith the custo#ers and identi"y i##ediate opportunities. During the closing o" this

paper, an action plan along %ith its reuire#ents %ill be discussed in an e""orts to establish a

sustainable "uture "or the co#pany.

Summary Focus

The shareholders o" S)' are a $ery i#portant part o" the continued success that the

co#pany has had. Their culture has e+panded across all business units o" the co#pany and are

sti#ulating e#ployees to achie$e opti#al per"or#ance. The e+ecuti$e #anagers needs to

e#phasie the i#portance o" taing riss %hen de$eloping products. 'hat strategy %ill S)'

need to get the industry leading reputation They %ill achie$e pre"erred position through product

di""erentiation.


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Key Takeaways

S)' $isions are per"ectly aligned %ith the production and sales acti$ities o" the

co#pany. )o%e$er, there can be i#pro$e#ents in the recruiting process, product de$elop#ent,

and incenti$e structure. The co#pany currently holds an industry leading reputation because o"

their custo#er loyalty, products, and #anage#ent tea#. They ha$e al%ays placed their custo#er

"irst, but it is ti#e to get inno$ati$e through the in-ection o" ne% products to #aret.

Integration of Concepts

S)' strategy should be re$ie%ed annually to ensure that ey ob-ecti$es are being #et by

the organiation. The achie$e#ent o" these #ain goals %ill ensure that the co#pany #aintains a

co#petiti$e ad$antage o$er its co#petition. The additional products that should be de$eloped

%ill not only separate the# "ro# co#petitors, but it %ill create a #uch needed change to the

paint industry.

Stakeholer Ientification an !alue "nalysis #Part I

A staeholder is a person, group or organiation that has an interest or concern in an

organiation (Business, 21!*. The S)' 5o#pany has nu#erous staeholders both internally

and e+ternally that ha$e a issue %ith the ongoing business o" the co#pany. The staeholders are

e#ployees, go$ern#ent agencies, and suppliers, co##unities in %hich there are operations,

custo#ers, creditors, trade unions, o%ners and in$estors (5arroll 6 Buccholt, 27* see igure

1&1. The staeholders concerns $ary %ith each, but they also include a %ide $ariety o" topics.

The shareholder $alues can so#eti#es be the sa#e $alues "or other shareholders. As a group,

each staeholder0s $alue re#ains consistently addressed during the daily operations o" the

co#pany.

igure 1&1. Staeholder 3denti"ication

9o$ern#ent

:#ployees5usto#ers


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Shareholder3denti"icationSuppliers

5o##unity


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The #ain staeholder "or the S)' 5o#pany is those %ho hold stoc o%nership in the

co#pany. There are t%o categories o" stoc o%nership> co##on stoc and pre"erred stoc. The

#ain di""erences in these t%o categories are that pre"erred stoc o%ners recei$e pay#ent "irst

%hen there are di$idends. Pre"erred stoc o%ners also ha$e greater clai#s to the co#pany0s

assets. The pre"erred stoc o%ners also recei$e a higher di$idend than co##on stoc o%ners do.

Their #ain concern is that the co#pany re#ains pro"itable %hile earning a return on their

in$est#ent (?lad-eno$ic, 21!*.

The custo#ers o" S)' are the ne+t crucial staeholders that ha$e an ongoing interest in

the co#pany. S)' has sho%n thans to its custo#ers by creating $arious progra#s that are

custo#er "ocused. They ha$e been able to #ae a co#petiti$e ad$antage by getting to no%

their custo#ers ('oodru"" 6 9ardial, 177=*. The co#pany no%s the basic principle that

%ithout custo#ers i" there is no tra""ic and the co#pany %ould go out o" business. 3t is e+tre#ely

necessary that they continue to e+pand their client understanding %hich %ill allo% the# continue

gro%ing.

The last ey staeholder "or S)' is the e#ployees. A co#pany could not achie$e

success i" it did not properly in$est in the training and de$elop#ent o" its e#ployees (Schlent,

212*. S)'0s e#ployees recei$e training that "ocuses on the satis"action o" custo#er needs. The

le$el o" satis"action ensures that the co#pany %ill include custo#er loyalty and repeat business.

The business 6 residential custo#er base ha$e sho%n signi"icant le$els o" co##it#ent to the

S)' brand. This arrange#ent has contributed to their success in recent years.

The $alue analysis identi"ies and selects the best alternati$es "or designs, processes,

#aterials and syste#s (Business, 21!*. The $alue adding chain o" S)' consists o" "our

co#ponents. Those co#ponents are color and design #areting, design engineering, "ield


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technical support, and supply chain reliability (S)', 21!*. S)' has recognied that it taes

#ore than creating an e+ceptional "inish "or products. They ha$e in$ested hea$ily in $alue&added

ser$ices that help other co#panies di""erentiate their brand "ro# their co#petitions. 3t %as their

co##it#ent to their custo#ers that ha$e helped this $alue added acti$ity beco#e the bacbone

o" the co#pany.

The 9lobal 5olor 6 Design 5enter "ocuses on pro$iding better "inishes "or custo#ers.

They are able to pro$ide /:? and product "inishing that is unparalleled. The ser$ices o""ered at

the global color 6 design center range "ro# color consulting 6 "orecasting to architectural color

tools to color card design and construction. The center also has color e+perts that are able to

assist in the de$elop#ent o" specialty colors and "inishes. The design engineering tea# is a

e+traordinary unit in the le$el o" custo#er satis"action. They ha$e the ability to opti#ie

#aterial, producti$ity, sa"ety and energy use. 3n addition to these ser$ices, S)' also "ocuses on

#a+i#iing e""iciency %hile eeping cost and labor to a #ini#u# (S)', 21!*.

The ield Technical Support unit specialies in supporting operations by using a hands on

approach. 'hether it is co#pleting a "inishing line analysis, or pro$iding recognition o"

ine""iciencies, tech support is there e$ery step o" the %ay. The "inal $alue adding acti$ity is the

reliability o" the supply chain. S)' uses the ust&3n&Ti#e (3T* in$entory #anage#ent process.

This #ethod allo%s the# to reduce %aste, #ini#iing in$entory costs and continually satis"ying

custo#er needs as they change ('antuc, 1787*.

Enterprise $evel Strategy

The "our di$isions o" S)' are not only an ad$antage, but they are portions o" the $alue

added ser$ices (AS*. These "our di$isions are the core co#ponents that e+e#pli"y the

organiation0s #ission and e+pression state#ents. S)'0s #ission> Cor o$er 14 years,


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#anu"acturers ha$e trusted Sher%in&'illia#s "or inno$ati$e coatings and e+ceptional ser$ice.

And you can count on us "or the e+pertise and the support you need to get better results, "ro#

start to "inish. S)'0s $ision> Cor A Better inish. As Sher%in&'illia#s. (S)', 21!*.

The S)'0s uality co##it#ent> CThe Sher%in&'illia#s 5o#pany has established a

$ision state#ent and uality co##it#ent (policy*, %hich states> C'e co##it to see out the

e+pectations o" our custo#ers and to consistently #eet and e+ceed those e+pectations through

our ser$ice, products and attitudes. The Sher%in&'illia#s 5o#panys0 5he#ical 5oatings

Di$ision ha$e sho%n dedication to sa#e $alues. /ur in$ol$e#ent and acco#plish#ents "or

earning Euality certi"ication is e$idence o" our ongoing co##it#ent to uality and continuous

i#pro$e#ent. This is e$ident in that the entire 5he#ical 5oatings Di$ision, including the

)eaduarters site, the Supply 5hain, ?anu"acturing and Research 6 De$elop#ent, is certi"ied

3S/ 71>2 standards (S)', 21!*

Culture Type

5ulture is both a Chere and no% dyna#ic pheno#enon and a coerci$e bacground

structure that in"luences us in nu#erous %ays (Schein, 21*. S)' has a culture that treats

e$ery e#ployee as "a#ily. The e#ployees ha$ing been e#po%ered typically thin outside the

bo+ and share inno$ati$e strategies %ith #anage#ent. 3n #ost cases, e#ployees %ho share

in"or#ation that bene"its the organiation gain credit %hile their ideas are in the process o"

e+a#ination. 3" i#ple#ented the e#ployee recei$es a "inancial incenti$e.

Daleah 'illia#s, a "or#er e#ployee o" S)' recalls an en$iron#ent the e#braces

inno$ation a#ongst e#ployees at all le$els. 3n one instance, ?s. 'illia#s recalls sitting do%n

%ith 5:/ 5hristopher 5onnor to discuss %ays to sti#ulate unpaid in$oice ti#ing. Although


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there %as no syste# i#ple#ented because o" this discussion, the #ere "act that the 5:/ interacts

%ith accounts payable clers speas $olu#es "or the co#pany and its leadership.

The culture across the industry $aries as each business #issions and $alue state#ents

di""ers. /ne o" their #ain co#petitors, DuPont, has a re#arably di""erent purpose than S)'.

CSustainable 9ro%th> 3ncrease shareholder and societal $alue %hile reducing our en$iron#ental

"ootprint (DuPont, 21!*. 'hile their culture e#braces pro$iding shareholders pro"it, the

co#pany "ails to address the uality o" their product.

Integrate Concepts from %eaings

The strategy, #ission and uality state#ents are all in align#ent. S)' has had unusually

"e% distractions as they ha$e the ability to adapt to any un"oreseen circu#stances. Since they can

uicly adapt to changes %ithin their industry, they are in a better position than #ost o" their

co#petitors. There ha$e been nu#erous discussions a#ongst #anagers to "ind ne% %ays to

attract and retain top talent. Talent and acuisitions ha$e been %oring hard i#ple#enting

inno$ati$e %ays to attract top talent. They ha$e targeted #anu"acturing, distribution, sales

pro"essionals, #anagers and dri$ers. Their ability to re$a#p their current syste# could brea

ne% ground in their goal o" being the leading co#pany in their industry.

Evience an Implications

S)' has e+tre#ely s#all debt in %hich it is responsible. The co#pany o%ns all o" its

production "acilities, euip#ent, and #ethods o" transportation. The less the co#pany has to

"ocus on #eeting its "inancial obligationsF they are able to channel that energy into e#ployee

attraction, de$elop#ent and retention. The co#pany has e+perienced gro%th o$er the last "i$e

years, and retention o" top talent and per"or#ers %ould also set S)' "or "uture gro%th.


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Along %ith the reduced sales re$enue, another hindrance is the rising cost o" "uel.

According to the


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to culprits %ho #ay contain #alicious intent. 5o#panies are no% %oring %ith securing data

%hile enabling e#ployees to operate re#otely to per"or# co#pany business.

+emographics , Social , Culture. The de#ographics "or the specialty che#ical industry

are re#arably di$erse. The #a-ority o" specialty che#ical co#panies has a base o" operations in

se$eral countries. Although the custo#s and traditions $ary by culture, the co#panies %ill #ore

than liely support local custo#s. The "ollo%ing o" local traditions allo% the# to build strong

bonds %ith the e#ployees, local go$ern#ent and their i##ediate area. The resulting

relationships allo% the co#pany to be #ore pro#inent, attract local business and position itsel"

as a player in the local #aret.

The di""erent co#panies that specialie in color related products tend to conduct their

business independently o" its co#petitors. S)' has recently purchased se$eral s#aller paint

co#panies including leading ?e+ican eui$alent 5onsorcio 5o#e+. The pending acuisition o"

the ?e+ican co#pany has gi$en S)' an additional !,=18 stores in Iorth A#erica. The culture

in the industry has also undergone changes since the larger co#panies are buying the s#aller

ones at a rapid rate.

&overnment , $egal , )ilitary* The Specialty che#ical industry has e+perienced recent

regulations propositions. The


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che#icals, consu#ers %ould loo to hold co#panies accountable in case o" #ishaps. The legal

syste# %ill then be "looded %ith "ri$olous la%suits that %aste ta+payer #oney and the ti#e o"

the -ustice syste#. The i#pact o" this bill could dri$e cost up "or consu#ers.

Physical Environment* The industry conducts operations in all cli#ates around the

%orld. )o%e$er, %eather %ill play a $ital role in the transportation o" che#icals. 3ncle#ent

%eather could delay or e$en postpone operations at critical "acilities. 3n 2!, there %as a

blacout in the Iortheast part o" the


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t%enty to t%enty&"i$e years. S)' %ill ha$e to arrange their products to #eet and or e+ceed the

regulations. 3" they cannot stay abreast %ith the regulations, they "ace serious penalties that %ill

be uite e+pensi$e.

The "inal threat that they are "acing is the absence o" the ra% #aterials that "all into their

products. As %ith any supply and de#and #odel, the less o" it that is a$ailable, the higher

de#and and the price %ill "ollo%. Resource depletion globally at a rapid rate. The population is

gro%ing at an e$en "aster pace. There %ill be industry %ide opposition to utilie the resources

that re#ain a$ailable.

-pportunities. The "irst opportunity "or the industry is e#erging #arets such as 3ndia.

3" the co#panies can get a "oothold in these #arets, they can #ae a strong relationship %ith

the indigenous population. The co#pany that is able to get a strong enough #aret share in

e#erging #arets %ill install itsel" to be the leader o" to#orro%. The e#erging #arets o""er

#ore than ne% custo#ersF they o""er potential #aret longe$ity.

The second opportunity "or the industry is the creation o" eco&"riendly products that %ill

be the products in de#and on to#orro%0s econo#y. 5o#panies can capitalie on the consu#er

trend o" using products that do not abuse the en$iron#ent. The possibility also e+ists to reduce

the cost o" ra% #aterials since co#panies %ill be using less o" the#. 3" S)' in$ests hea$ily in

eco&"riendly products, inco#e generated %ill increase.

The "inal opportunity "or the industry is "or research and de$elop#ent depart#ent to

create ne% and inno$ati$e products "or introduction to the #aret. 5o#pany e+ecuti$es %ould

need to inter$ene and pro$ide incenti$es "or products that could #ae niche #arets. The

products could range "ro# /:? "abricated li"e e+tending coatings, rein"orce#ent coatings, heat


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reducing po%der coatings, and sel"&bonding adhesi$es. These products could lead the %ay "or

"uture de$elop#ent o" other inno$ati$e products

Porter.s Five Forces Inustry "nalysis' External ( Inustry Environment

Five Forces )atrix "nalysis

'hile so#e co#panies #ay consider entering the specialty che#icals and paint industry,

they should be a%are o" %hat a""ects the industry. The "i$e "orces by Porter should be considered

by a business looing to gain a "oothold in the industry. They should consider is there are any

substitutes that can change the pricing structures that could reduce "uture re$enue. They should

also be able to deter#ine the bargaining po%er o" the industry suppliers and consu#ers. Another

consideration %ould be their raning in the #aretplace, are they lo%, #ediu# or high

5o#petitors should also be understood as they are the ones %ho can in"luence the #aret. They

should also no% ho% to di""erentiate the#sel$es in an atte#pt to create a co#petiti$e

ad$antage.

/arriers to Entry. Ie% co#panies should no% that there are nu#erous barriers to enter

this #aret. 5o#panies %ould need to register %ith the


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able to do this is highly unliely, and there"ore they %ill not be able to obtain a stae in the

industry.

Substitutes. There are substitutes that can change the #aret place. )o%e$er, substitutes

are not particularly "a$ored by consu#ers %hen it co#es to painting their ho#es, businesses and

other ite#s. Substitutes are typically cheap products that do not ha$e the sa#e ualities as the

brand na#es that currently e+ist in the #aret place. The co#panies that ha$e a controlling

interest in the industry ha$e all in$ested hea$ily in ne% technology, patents and resources to

deli$er better products. 'hile these products tend to #o$e rapidly, there is clearly no substitute

and thus "a$ored.

/argaining power of Suppliers. The bargaining po%er o" suppliers is the "ocal point o"

the paint industry. There are no broers to balance the po%er and ad-ust costs "or ra% #aterials.

The co#panies in the industry use so#e o" the sa#e suppliers and products in their production

process. )o%e$er, suppliers ha$e recognied that co#panies #ay be looing to go green and use

products that not har#"ul to the en$iron#ent. This has led to suppliers eeping prices at a

steadily increasing rate that #irrors the in"lation rate in the


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Competitive %ivalry* The co#petition in the specialty che#ical paint industry is een.

There are a "e% co#panies that ha$e #ade an i#pact and continue to set industry trends. The

co#panies in this industry %ill so#eti#es try to use one s#aller ri$als to e+pand their business

inco#e. S)' is a pri#e e+a#ple o" a larger business that used s#aller co#panies to its

ad$antage. Since S)' did not ha$e a strong "oothold on the %est coast o" the


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%ould call "or custo#ied ad$ertising and sales plans "or di""erent locations. The strengths o" the

co#pany are that they lead the #aret, ha$e strong R6D capabilities and a di$ersi"ied re$enue

strea#. DuPont0s %eanesses are their regulatory actions and legal proceedings. 'hile neither

processes are "a$orable, they ha$e the potential to beco#e large liabilities.

3n this industry, there are usually little to no ne% entrants. 3" there are ne% entrants %ho

ha$e the ability to tae a considerable a#ount o" the #aret share, the larger co#panies %ill get

the#. 3" co#petitors lo%ered their prices, they %ould be da#aging their brands and create a issue

%ith their uality. 3" another business conuering product beco#e a$ailable, co#panies %ould

then end up %ith ne% and inno$ati$e products. Although there is a nor#al co#petition, each

ha$e the ability to ad-ust the industryJs perspecti$e.

Implications of Five Forces

Threats* The top three threats "or S)' are the current state o" the econo#y, go$ern#ent

regulations and scarcity o" ra% #aterials. The econo#y plays a signi"icant role in the potential

re$enue to be #ade. The go$ern#ent regulations are a constant ris as they can decide ho%

co#panies process and du#p che#icals. 3n con-unction %ith the pre$ious #entioned, the

scarcity o" ra% #aterials contributes to "uture price "luctuation.

-pportunities* The opportunities a$ailable "or S)' are gro%ing potential, creating

eco&"riendly products and e+panding research 6 de$elop#ent capabilities. The co#pany has an

outstanding opportunity in ne% and e#erging #arets such as 3ndia. 5reating products that are

not har#"ul to the en$iron#ent %ill play an enor#ous role in the success o" co#panies in the

"uture. S)' also could e+plore ne% adhesi$es, paints, and product li"e e+tending coatings.


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+etaile !alue Chain "nalysis' Internal Environment

Customi0e !alue Chain of "ctivities in Table Form

A co#pany0s $alue categoried in 7 ele#ents> general ad#inistration, hu#an resources,

R6D, procure#ent, inbound logistics, operations, outbound logistics, sales and #areting, and

ser$ice (Porter 6 ?illar, 178;*. 9i$en this set o" ele#ents, each co#pany #ust understand and

realie their potential in order to e$ol$e %ith the #aret. 3n the table illustrated belo%, S)' is

rich in #any o" the sa#e areas as its co#petition. The R6D "action o" S)' has roo# "or

i#pro$e#ent as they are lacing in co#parison to DuPont and PP9. Since S)' is a signi"icant

player in their #aret, they ha$e the "inancial resources to in$est hea$ily in research and

de$elop#ent.

The hu#an resources depart#ent has a #ediu# rating because o" their lac o" attracting

top talent in the industry. 'hile the co#pany $alues its e#ployees, they ha$e not created any

progra#s to attract e#ployees o" other co#panies to -oin their rans. The a$erage engineer has

been %ith S)' "or 1 years %hile the a$erage at its co#petitors is 1;&2 years. S)' %ill need

to in$est hea$ily in attracting top talent, %hich include those "ro# co#petitors. 3n cases %here

they #ay ha$e signed non&co#peting clauses, they could be hired in a consulting capacity.

Table 1&1

Value Chain Analysis

Business Process S)' DuPont PP9 3ndustries

?anage#ent Strong Strong Strong

R6D ?ediu# Strong ?ediu#)R ?ediu# Strong StrongProcure#ent Strong ?ediu# Strong3nbound Logistics Strong Strong ?ediu#/perations Strong Strong Strong/utbound Logistics Strong Strong StrongSales Strong Strong Strong


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Ser$ice Strong ?ediu# ?ediu#

Company Skills , Capabilities

S)' has e+ceptional talent %ho ha$e the ability to #ae the# a 1 billion dollar

co#pany. The #e#bers o" their R6D tea# ha$e a co#bined a$erage o" 1 years0 e+perience

%ith the co#pany in those positions. ?any o" the e#ployees co#e "ro# other areas %ithin the

organiation recei$e pro#otions, re&trained, or certi"ied in their ne% positions. Their sills and

e+pertise beco#e apparent %ith the uality o" products that S)' has in the #aretplace. 3" they

can increase the #areting and sales depart#ent0s e""ecti$eness, they ha$e the ability to

outper"or# PP9 3ndustries to obtain the second place in their industry.

The sales tea# typically spend the #a-ority o" its ti#e selling paint and household

products to cos#etically enhance the beauty o" one0s ho#e. The custo#er ser$ice tea# recei$es

recognition as an e+cellent asset to the co#pany. Their e+pertise has yielded a high le$el o"

custo#er satis"action. 3n order to increase re$enue, they %ill ha$e to be #ore aggressi$e %hen it

co#es to satis"ying custo#ers0 needs. The operations side o" S)' has done a #ar$elous -ob

because they ha$e recognied areas o" %eaness and i#ple#ented i#pro$e#ents. They ha$e

also been the dri$ing "orce behind acuisitions o$er the last couple o" years.

Implications of Competitive "nalysis

The de"ining o" strengths, %eanesses, sills and capabilities %ill help deter#ine the

e""ecti$eness %ithin the co#pany. S)' %ould bene"it by i#ple#enting ne% products that could

be de$eloped by R6D. The strengths, %eaness, sills and capabilities highlight S)'0s

co#petiti$eness.

Strengths* The strengths o" S)' e+ist in their #anage#ent, sales and custo#er ser$ice.

The e+ecuti$es ha$e #ade %ise decisions that ha$e increased business re$enue o$er the last ;


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21

years. The possibility o" increasing sales in e#erging #arets is a encouraging #o$e "or the

co#pany. 5usto#er ser$ice %ould #aintain a high le$el o" satis"action and thus guarantee the

return o" custo#ers.

1eaknesses* The %eaness as identi"ied in the $alue chain analysis is the lac o" action

by the hu#an resources depart#ent and R6D. 'hile the co#pany has sho%n tre#endous

interest in its e#ployees, it has yet to i#ple#ent strategies to retain top talent. Progra#s that

%ould help attract top talent %ould be a sign on bonuses and product inno$ation pro"it sharing.

The sign on bonus %ould attract talent, but the product inno$ation pro"it sharing %ould increase

inno$ation a#ongst R6D sta"".

Skills* The top three sills that S)' ha$e are custo#er ser$ice, #anage#ent tea#, and

operations. 3n co#parison to their co#petitors, their custo#er ser$ice tea# pro$ides outstanding

ser$ice. 'hile their co#petitors also ha$e strong #anage#ent tea#s, S)'0s #anagers are

e+cellent at noticing capacity in s#aller co#panies and acuiring the# to use their strengths. The

"unctional loo "ar e+ceeds that o" its co#petition. 'hile the co#petitors ha$e di$ersi"ied

re$enue strea#s, S)' #aintains a $ariety o" business that allo%s the# to #aintain o$er 1,;

stores "or custo#ers to $isit and ha$e one on one ti#e %ith color e+perts. The sa#e could not be

said "or the lies o" DuPont and PP9 3ndustries.

Capabilities* The capabilities %here S)' #aintains a co#petiti$e ad$antage can be

"ound %ithin inbound logistics, procure#ent, and outbound logistics. The co#pany has pro$ed

e+ceptional in #aintaining its in$entory using the 3T in$entory syste#. This sa#e #ethod "or

outbound logistics and typically reduce in$entory costs and #aintain in$entory le$els consistent.

The procure#ent process is uniue. They procure ra% #aterials, ser$ices, euip#ent, and e$en


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22

other co#panies.


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2!

ST Strategies* The #anage#ent tea# can help "ight the poor state o" the global

econo#y. ?anagers can loo "or non&$alue adding ser$ices and reduce e+penses pertaining to

the#. 3" a ser$ice o""ered does not increase re$enue strea#, it could be ti#e to in$estigate

alternati$es. The sa$ings by the reduction o" these ser$ices are used in cost reductions $ia

coupons and repeat custo#er use progra#s. 3" a custo#er or entity #aes S)' their paint store

o" choice, the loyalty progra# %ill re%ard the#. They can also per"or# an annual ra""le that

%ould #aeo$er ; housesKentities in each country.

R6D %ill signi"icantly help the co#pany a$oid the threats o" go$ern#ent rules and

regulations. The R6D business could i#ple#ent a progra# that %ould see to use products that

do not har# hu#ans, the en$iron#ent, or tested on ani#als. As the #aret shi"ts to consu#ers

%ho are #ore conscience about their purchases, #areting the social responsibility o" the

co#pany %ould increase re$enues. Their re$olution %ould allo% the# to tout the#sel$es at the

%orld0s "irst "ull eco&"riendly paint co#pany.

The operations o" S)' can play a signi"icant role in the e$olution o" the co#pany. 'hile

they ha$e "orged relationships %ith nu#erous suppliers, they ha$e the ability to change the

producers. As they are a ey #aret participant, their eco&"riendly approach could increase

production o" en$iron#entally "riendly products. As %ith nor#al S)' practices, their patented

process %ould deter#ine the usage o" ne% products in production. The #anage#ent tea# could

loo to share patented in"or#ation %ith co#petitors "or a portion o" their pro"its.

1- Strategies* The identi"ied %eanesses o" S)' are the R6D sector and hu#an

resources. The R6D de"iciency can be #itigated #anage#ent tea# %ith the help o" the

operations tea#. Both areas can help increase re$enue and reduce operational e+penses. A

co#bined e""ort could generate re$enue "ro# areas that %ere pre$iously non&$alue adding. An


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24

e+a#ple %ould be #anage#ent conducting sur$eys %ith "irst ti#e ho#eo%ners. To e+tend that

concept, ha$ing updated real estate sales listings %ould help "ocus that #aret.

The %eaness in hu#an resources and operations sector can easily co#ple#ent one

another. Since hu#an resources %ould loo to attract ne% talent, the current operations could

highlight their talents. The di""erent depart#ents %ould encourage e#ployees to see re$enue

generating inno$ati$e solutions. 3nitiating a tas "orce to can$as and solicit business a#ongst

ne% ho#ebuyers %ould be bene"icial.

1T Strategies* The %eaness o" the R6D depart#ent and danger o" the econo#y only

intensi"ies the need to increase producti$ity in other areas. 3nbound 6 outbound logistics are t%o

areas that could lend its re$enue sa$ings to "altering progra#s. The logistical reduction strategy

%ould sa$e the co#pany #illions o" dollars annually on gas. Logistics are a necessity to #eet

custo#er needs through in$entory replenish#ent, it could also be the $alue chain co#ponent that

reduce costs %hile increasing re$enue.

The hu#an resources %eaness in con-unction %ith the threat o" go$ern#ent rules and

regulations could be tre#endously bene"icial "or the co#pany. Since the go$ern#ent regulations

are not "reuent, they could hire e#ployees %ho ha$e e+cellent records o" acco#plish#ent

#eeting andKor e+ceeding go$ern#ent standards. :#ployee hiring0s should encourage ne%ly

hired e#ployees to introduce ne% 6 #odern production ideas to the co#pany.

SC-T Factor )atrix

S- Strategies* The business acu#en o" the #anage#ent tea# %ill allo% sales, ser$ice,

and operations to e+pand its capacity. )a$ing such di$ersity stri$ing "or the sa#e goal %ill

pro$ide custo#er ser$ice representati$es to build rapport %ith each custo#er. The industry built


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2;

on relationships %ith suppliers and custo#ers alie. The stronger relationship %ith both, S)'

can see their di$erse needs.

ST Strategies* The operations tea# needs to e+ercise their ability to control their

suppliers. A strong e""ort to increase bul purchases should lo%er prices too as #ost suppliers

o""er discounts "or bul purchases. An e+a#ple %ould be buying paint pig#ents at H1, per

ton. 3" buying in bul, let0s say ; tons, H!;,&H4, should be the a#ount o" the purchase.

C- Strategies* The #anage#ent tea# and procure#ent ha$e done e+cellent ser$ice

together in the past. 3" there are ne% entrants to the paint #aret, they ha$e routinely bought the

co#pany i" they had a product that could change the #aret. eeping that #entality and attitude,

purchasing pro#ising paint co#panies %ill gi$e the# the tools needed to re#ain co#petiti$e.

The co#pany can also in$est in other co#panies that specialie in the sa#e areas in %hich they

are specialist. The in$est#ent should be a controlling interest in the co#pany. The strategy

behind that is i" the co#pany does e+ceptionally %ell, S)' %ill still bene"it.

CT Strategies* The sales tea# is an e+traordinary "orce behind the S)' brand. 'hether

it is a co#pany or custo#er, the sales tea# no%s ho% to identi"y products that best ser$e each.

'hile the sales tea# "ocuses on selling, they %ould no% need to "ocus on selling products %ith a

#arginal #arup on the price. 3" it costs a co#pany H=, to "il# euip#ent, the sales tea#

should guide the# to buy %arranties and such. The sale should be in the neighborhood o"

H@;,&H8,. Although the econo#y is in ruins, the sales tea# can tacle the pending

recession.

Key Success Factor )atrix "nalysis

The #ost critical co#ponent o" the success o" S)' is the senior e+ecuti$e #anage#ent,

operations and sales and #areting tea#s. The #ost signi"icant o" the three co#ponents is the


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2=

#anage#ent tea#. The e+ecuti$e #anage#ent tea# has the po%er to in"luence and change the

%ay in %hich the co#pany heads by i#ple#enting a ne% policy. The #anagers ha$e a solid

understanding o" the changes in the #aret, operational needs and the ability to sell #erchandise.

3t is %ith this no%ledge that #anagers can predict and #ae ad-ust#ents based on the $arious

"orecasting "actors.

The sales and #areting tea# ha$e to %or closely %ith the operations depart#ent. 3n

con-unction and support "ro# #anage#ent, they ha$e the ability to i#ple#ent change as

directed by #anage#ent. Along %ith change i#ple#entation, they are the t%o depart#ents that

%ould e$entually deter#ine the standard "or the rest o" the co#pany. )a$ing set the standard and

raised the bar on business operations and product sales, the industry %ill tae notice.

Implications of "nalysis

The i#plications as highlighted in the pre$ious analysis are the chances o" #aret

changes. The #aret "or ite#s constantly change o$er ti#e and are e+tre#ely di""icult to predict

since there are nu#erous e+ternal "actors that a""ect the #aret. The analysis contributes to

S)'0 understanding o" changes needed in order to stay ahead o" the #arets cur$e o" change. 3t

#aes a lot o" sense "or the co#pany to continue building upon their strong points, but it #aes

e$en #ore sense to #ini#ie %eanesses. The S'/T ser$es as a great tool to the co#pany as it

relates to the co#petition. The S5/T also helps analye and utilie strengths in an e""ort to

co#ple#ent %eanesses. The co#bination o" the ey "actors helps the co#pany #ae the

decision on ho% and %here to #o$e talent %ithin the organiation.


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"naly0ing the Company Strategy Type #Part II

Strategy Type

To be e""ecti$e, it is i#perati$e that the strategy is in align#ent %ith the $alues, #ission,

and culture o" the co#pany. 3t is up to the e+ecuti$e tea# to see %hat the needs o" the co#pany

are and ho% they #ust be achie$ed. The best approach "or the co#pany is to "ocus on

i#ple#enting a custo#er relationships strategy. Although the co#pany has strong relationships

%ith its custo#ers, they should go a step "urther to let their custo#ers no% they are $aluable.

As %ith any business, custo#ers and their satis"action play a $ital part in the "ailure or

success o" the co#pany. 5o#panies that are able to build strong custo#er relationships are those

that are %hales in their industry. Although it is easier to continue to "ocus on the current custo#er

base, the challenge %ould be to e+pand that base and target other consu#ers. Their e+pertise in

custo#er satis"action and custo#er loyalty base %ill instantly #ae the# a "a$orite.

Suppliers are al%ays seeing %ays to increase their producti$ity. S)' %ill also bene"it

"ro# strong supplier relationships. 3" the co#pany can create a strong #eans o" co##unication,

dedication, and loyalty, then the suppliers %ill go the e+tra #ile to eep the business o" S)'. As

%ith any relationship, the ey "actor is co##unication. 3t %ill tae both co#panies %oring

together to achie$e the goal o" attracting ne% custo#ers and increasing re$enue.

The "inal ans%er to i#ple#enting a custo#er relationship strategy is co##it#ent. There

are #any suppliers in the #aretplace in %hich S)' could buy ra% #aterials. The leading

suppliers and $endors understand the i#pact loyalty has on a co#pany0s botto# line.

Supporting "rgument

S)' should see the custo#er relationship strategy and re%ard custo#er loyalty. They

are currently doing an e+cellent -ob %ith custo#ers but %ant to e+pand their client base %ith an


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28

e#phasis on custo#er satis"action %ill balance the co#pany "or longe$ity. The #anage#ent

tea# %ill need to tae a #ore hands on approach and #ae sure they re#ain a$ailable to

custo#ers and suppliers "or uestions or in"or#al interactions. 3t is also tre#endously necessary

to e#phasie custo#er appreciation through dedication and incenti$e progra#s.

"naly0ing the Company Strategy )oves

%elevant Strategy )oves

The strategy that S)' applies during its business approach is the -udo strategy. The

co#pany has been e#ploying this strategy "or a nu#ber o" years. They ha$e #astered the -udo

techniues o" #o$e#ent, balance, and le$erage. The co#pany0s #o$e#ent has "ollo%ed the -udo

#o$e#ent theory. As the co#pany prepares to #ae #o$es or acuisitions, they "ollo% through

uicly and eep under the radar during the process. The acuisitions are typically o" paint

co#panies.

The -udo strategy also calls "or the co#pany to #aintain balance. The techniue indicates

that stability is gripping opponents, not co#peting head on, and pushing %hen pulled. S)'

e+hibits this balance by gripping their opponents %ith the #aret introduction o" inno$ati$e

products. They also do not co#pete head on since their pri#ary co#petitors ha$e re#arably

di$erse sources o" re$enue. The #o#entu#s o" their co#petitors ha$e ser$ed as a source o"

energy "or the co#pany.

The "inal -udo strategy is le$erage, or creating an ad$antage based on your opponents0

assets, partners, and ri$als. S)' has sho%n e+ceptional strength through its nu#erous

acuisitions, strong relationships %ith suppliers, and its large share o" the paint industry.


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Pricing

Distribution

?aret Share

?areting

Recruit#ent

Trainin

Retention

)u#an ResourcesR6D

3nno$ation

:""icienc

3#pro$e#ent


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!2

the ne%ly i#ple#ented strategy. 3s there any e+ercises that %ill need to be co#pleted by

e#ployees Do they need ne% tools 3s the co#pany adeuately sta""ed )o% %ill progress be

handled 'hile there are se$eral other uestions, these are -ust a "e% that #ust be ans%ered.

Supporting "rgument

The e+ecuti$e #anagers o" S)' currently #eets uarterly to discuss the goals and ho%

they are per"or#ing in relation to the#. The #eetings allo% each business unit #anager to

discuss their intentions to either #eet their goals, or beat the#. Although each business unit

di""ers, the #ain assets that they all ha$e that are si#ilarly are its people. The goals and plans are

highly e""ecti$e %hen they in$ol$e the e#ployees. A clear understanding o" the o$erall process

enables the e#ployee to see the large picture and see ho% their -ob contributes to the co#pany as

a %hole.

Fitness $anscape "nalysis

+escription of Fitness $anscape an "nalysis

The paint seg#ent o" the specialty che#icals business has undergone nu#erous changes

during the last 2; years. The current econo#y ri""s ha$e encouraged S)' to rethin its pricing

strategy in order to #ain its high le$el o" custo#er loyalty. According to Peter )ill, co#panies

need to eep their pricing strategies in line %ith their pro"it ob-ecti$es ()ill, 21!*. Since paint

co#panies are a part o" the specialty che#icals #aret, their pro"it #oti$es are "ar #ore

e+tensi$e than those %ho ha$e di$ersi"ied re$enue strea#s.

The "itness landscape has t%o corresponding areas> reproducti$e and sur$i$al.

Reproducti$e "itness taes place %hen a di$ision or co#pany endures circu#stances resulting in

the creation o" ne% and si#ilar syste#s. The sur$i$al "itness taes place %hen adaptability and

e+isting are the only "ocuses. Since the "inancial crisis in 27, the entire specialty che#icals


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industry has e+perienced a decline in sales as %ell as ne%ly i#ple#ented go$ern#ent

regulations. The paint industry has adapted nothing short o" a sur$i$al o" the "ittest #entality.

S)' has been able to adapt to the rapidly changing en$iron#ent. They ha$e been able to stri$e

"or%ard due to their alue Added Ser$ices.

The %eaness that plagues S)' but has unli#ited potential is their #oti$ation progra#

"or ne% products. The "itness landscape o" the specialty che#icals industry has changed due to

DuPont spending #illions on the attraction and retaining o" top talent. S)' has the option to run

in the sa#e direction by in$esting in product ingenuity through di""erent pro"it sharing

incenti$es.

According to Stacey, the do#inant discourse theory de"inition is Cthe idea o" a person not

taling in the ter#s o" the $isions, #issions, strategic plans, targets, policy, rules, per"or#ance,

e""iciency, and i#pro$e#ent they %ill not be able to sustain their #e#bership o" the #ore

po%er"ul grouping in organiations today (Stacey, 21!*. The description holds true regardless

o" the ran and title an e#ployee holds. The do#inant discourse theory %ould then create a

plethora o" sycophants instead o" di$ergent thiners. 3n e+tre#e cases, those di$ergent thiners

%ould need to be $ery cra"ty to encourage cultural change. 3t is not unco##on to see

corporations recruit talent %ho "eel that passion and dedication to e""ectuate change.


The S)' brand na#e has a reputation that "ar e+ceeds that o" its direct co#petitors. The

co#pany has a bright and sill"ul group o" indi$iduals that contribute to the o$erall success o"

the co#pany. 3 belie$e that the co#pany does not ha$e the talent roster that %ill tae it into that

H1 billion dollar threshold. )o%e$er, resources a plenty, they ha$e the ability to in$est in the

recruit#ent o" di$ergent thiners that %ill create a ne% le$el o" creati$ity and a %ell&balanced


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culture. 3n$esting in #ore capacity %ould be the #ost signi"icant de$elop#ent o" action needed

to produce results.

Although the econo#y has initiated policy ree$aluations a#ongst industry titans, each are

ulti#ately responsible "or their o%n "uture. 9i$en the o$erall status o" their "inancial situation,

they are in a great place to e+ercise their "inancial strength.

/oi "nalysis

3/oi "nalysis4 Systems +escription an "nalysis

As "ar bac as record eeping too place, the paint industry e+isted and %ould go through

so#e trans"or#ation. The si#plicity o" the rules then could not #eet the co#ple+ity

reuire#ents o" the industry in its current state. /$er the course o" ti#e, each industry

participant "ound a need to set their product apart "ro# its co#petitors. Product di""erentiation

%ould go on to beco#e the staple "or paint co#panies looing to stand out. The co#petition has

in$ested hea$ily in research 6 de$elop#ent, e#erging #arets, attracting creati$e e#ployees.

5o#panies lie DuPont, PP9, alspar and Behr ha$e #astered the art o" le$eraging prices so

their custo#ers %ill beco#e loyal.

The industry began to tae its shape %hen the #ain co#petitors begin to address the

standards that custo#ers %ould e+pect "ro# ne% entrants. The DuPont che#ical co#pany has

been the dri$ing "orce behind the paint business "or %ell o$er a century. The business acu#en o"

the co#pany has intrigued co#petitors and s#all startups to e#ulate their success. 'hile the

industry has #orphed se$eral ti#es, it is still dri$en by custo#ers %ho rely on custo#er ser$ice

in %hich S)' e+cels. The co#pany #aintains a great pricing structure, loyal custo#ers, and

state o" the art tools a$ailable "or use. Although the recession has "orced custo#ers to reuest

cheap alternati$es, the #a-ority o" S)'0s custo#ers ha$e re#ained "aith"ul.


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to beco#e an industry leading paint #anu"acturer, their ulti#ately responsible "or #aing pro"its

"or its shareholders through sales, #ergers, or acuisitions.

Inustry Evolution )oeling

Inustry Evolution )oeling +escription an "nalysis

3n its current state, the paint industry is currently in the second&order thining syste#s

#ethodology. The industry has taen technological ad$ance#ents and used the# as a tool to

e+pand their o""erings to custo#ers. There are only a hand"ul o" industry participants %ho ha$e

the technology and "inancial assistance to pursue such options. According to Ralph Stacey, the

second order thining syste# #o$es a%ay "ro# a realist belie" in syste#s, regards syste#s as

hypothesis, and so as %ays o" thining rather than as e+isting things. The attention is "ocused on

the obser$er o" the syste# as also a participant in the syste# (Stacey, 21!*.

The second order thining syste# calls "or e+ecuti$e #anage#ent #e#bers and research

and de$elop#ent to be a%are o" the "ra#e%or in %hich the co#pany operates. S)' has used

this to their ad$antage as #anagers ha$e gi$en research and de$elop#ent the ability to operate

%ithin the "ra#e%or %hile being collaborati$e %ith other business units. The co#pany realied

that their strongest contribution %as their hu#an capital. The assets are realied through high

uality products, dedication to the co#pany, its goals and #issions. The e#ployees are $ery

understanding o" the industry needs, technology a$ailable and ho% to integrate the t%o.

There are di""erent phases contained %ithin the second order thining #ethodology. 3n

the "irst phase co#panies disco$er and e#ployee beha$ior re#ains consistent, as -u#ping to

conclusions too uicly could be disastrous. The second phase calls "or a nu#ber o" s#aller

syste#s to be de$eloped "ro# the big picture. 3n this phase #anagers are looing "or ele#ents

that enhance and address proble#atic situations. The third phase in$ol$es the creation o" syste#s


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!@

de$eloped in stage t%o. 'hile these syste#s are not blueprints, they do send conceptual ideas

regarding change i#ple#entation.


The i#plications o" the second order thining syste# is that de$elopers and co#panies

can be reluctant to thin outside o" their co#"ort one. 3n #any scenarios, goals are set but the

best %ays to achie$e the goals are not taen into consideration %hen syste#s are being

de$eloped. 3" a de$eloper is a #e#ber o" the process in %hich a product is being de$eloped in,

ho% %ill the syste# #aintain its ob-ecti$ity C3t has presented #odels o" organisational

interconnections so as to pro#ote greater understanding o" organisational dyna#ics and use"ul

analyses o" %or"lo%s (Stacey, 21!*. As the global econo#ic practices change %ith each

ad$ance in technology, de$eloping ne% syste#s has beco#e detri#ental to co#panies seeing

sustainability.

The paint industry ha$e undergone a lot o" changes to its processes and procedures %ithin

the last 2; years. The larger co#panies in the industry ha$e #aintained their position as being

industry titans %hile s#aller ones ha$e been absorbed or gone out o" business. The s#aller

co#panies tend to not %ant to participate in the global #aret %ith the industry titans. The #ain

reason "or this stance is that s#aller co#panies do not ha$e the "inancial resources to "ight the

shi"ts in the #aret. The industry0s gro%th i#plicates that large co#panies %ill be able to

pro$ide better ser$ices that the s#aller #o# and pop operations. S)' has taen "ull ad$antage

o" this "act by pursuing s#aller co#panies and gi$ing the# access to the global #aretplace

through rebranding. Acuiring the co#panies allo% S)' to slo%ly and steadily build assets

%hile continuing to e+panding its custo#er base. The ulti#ate goal is custo#er satis"action and

as long as they can continue to pro$ide this ser$ice, S)' %ill be around "or a long ti#e.


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$ife Cycle "ssessment

$C" )oeling +escription an "nalysis

The paint #aret has undergone nu#erous changes during the last 1&1; years. The

#aret %as doing e+ceptionally %ell be"ore the great "inancial crisis o" 28. S)', ha$ing been

around "or o$er 1 years, has been able to sur$i$e rough ti#es through custo#er loyalty and

process inno$ation. Since the #a-ority o" consu#ers %ere dri$en by price, it has led to so#e

co#panies not being as success"ul in co#parison to earlier ti#es.

The paint industry0s li"e cycle is operating in a continuous circular #otion. The ra%

#aterials being used are #o$ed "ro# co#pany A to co#pany B. 5o#pany B used the ra%

#aterials to #ae paint #aterials in %hich an end user %ill buy "or their uniue painting needs.

3ndustry leading co#panies are better euipped to purchase enough #aterials to eep the li"e

cycle running. The endless cycle enables the business to conser$e and re#ain co#petiti$e.

9o$ern#ent regulations and the rising cost o" petroleu# ha$e a #a-or i#pact on the

industry and ho% it continues to do business. 5o#panies are all #aing sure that they are in

co#pliance %ith go$ern#ent regulations as they are producing their products. 3" they do not

#eet the standards by the


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!7

e+tra space used ha$e sa$ed on #illions on the shipping o" tons o" "reight. The li"e cycle diagra#

"or S)'0s acti$ities is as "ollo%>

igure 2

S)' li"e cycle


The paint industry has a continuously e$ol$ing li"e cycle co#pared to other industries. As

long as consu#ers ha$e di""erent tastes, paint %ill al%ays be an option "or the# looing to

change the appearance o" their car, ho#e, or other indi$idual product. The paint industry %ill

continue to #aintain its position and progress. They %ill continue to co#e up %ith inno$ati$e

%ays to e+tend li"e o" e$eryday products %hile reducing their carbon "oot print. The industry %ill

continue to de$elop #odern technology as it relates to color de$elop#ent. There %ill be


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increased sa$ings on shipping #aterials as S)' has e+e#pli"ied %ith its ship#ent o" products

using "ull cargo loads.

Compliance to Innovation "nalysis

Compliance to Innovation +escription an "nalysis

'hile the possibilities do e+ist "or ne% entrants to enter the #aret, larger corporations

#aintain a #onopoly on the industry and its tra-ectory. There are currently progra#s in place that

are assisting custo#ers in choosing paint colors, product li"e e+tending ena#els, and the

transportation o" their products. The #ain co#petitors ha$e ree$aluated their dri$ers to align

the# %ith those o" DuPont, since they are the industry suppliers. These actions ha$e lead

consu#ers to beco#e #ore loyal to their brands o" choice. Since s#aller co#panies ha$e hard

ti#es purchasing and i#ple#enting ne% technologies, it lea$es the titans roo# "or unchallenged

conuering o" the industry. S)' has spent se$eral #illion dollars to upgrade their syste#s,

relationships %ith custo#ers, and increase supplier relations.

S)' has sought inno$ati$e %ays to increase process uality, %hile e+ceeding pre$ious

le$els o" inco#e 6 custo#er ser$ice. The e+ecuti$e #anage#ent tea# o" S)' has appro$ed

nu#erous upgrades to their in&house so"t%are pacages to re#ain co#petiti$e. The decisions and

goals o" the co#pany ulti#ately lie in the decisions that #anagers #ae. S)' has beco#e a

pioneer in the paint industry based on their ability to introduce inno$ati$e products to the #aret.


The inno$ati$e practices o" a co#pany can be the deciding "actor in their "uture success

in a gi$en #aret. The "act that #arets "luctuate calls "or co#panies to be "le+ible and re#ain

co#petiti$e by introducing ne% and inno$ati$e products. S)' has been able to #ae

ad-ust#ents in the #aretplace due to their "inancial stability and product uality. Their position


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allo%s the# to e+plore areas o" the #aret that ha$e not been tapped "or re$enue purposes. Their

uniue ability to "ind that niche product enables the# to re#ain one o" the top three dri$ing

"orces in the paint industry.

Sustainable !alue Framework "nalysis

+etaile "nalysis of "ll Four 5uarants

To beco#e sustainable co#pany, the #anagers o" S)' ha$e to understand the

i#portance and signi"icance o" the challenges contained %ithin the "irst uadrant. The re%ards o"

the industry are re#aining constant as the threat is beco#ing #ore di""icult. ?anagers should

learn to na$igate through di""icult sectors o" the paint industry %hile #aintaining a%areness.

S)' %ill need to create $alue %ithin their operating structure %hile enco#passing the global

en$iron#ental needs. The actions conducted by #anage#ent %ill create $alue "or its

shareholders %hile e+panding its business acti$ities.

The co#pany can reduce %aste by consu#ing "e%er ra% #aterials. The consu#ption o"

"e%er ra% #aterials %ill reduce their o$erall pollution and carbon "ootprint. 3nno$ati$e %ays to

product uality products %hile consu#ing "e%er #aterials %ould be a great in$est#ent. The

di""erent construction #ethods %ill lay the ground%or "or the sustainable "ra#e%or.

The "ollo%ing uadrant i" today0s business practice addresses the e+ternal en$iron#ent.

The co#pany needs to establish a closer relationship %ith its shareholders through transparency

progra#s. Through these progra#s, shareholders %ill be able to get a gli#pse o" the co#pany0s

acti$ities at any #o#ent in ti#e. Transparency also solidi"ies their reputation as producing

uality products %hile #aintaining their core ethics $alues.

The third uadrant addresses the e+ternal en$iron#ent "or to#orro%. S)' has to tae

into consideration the population, po$erty, and ineuity a#ongst the %orld0s inhabitants. A


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thorough understanding %ill allo% S)' to address the needs o" $arious classes o" society. The

a""ordability o" products "or e$ery class %ill set S)' apart "ro# their co#petitors. A global

co#pany pro$iding a""ordable products guarantees their in$ol$e#ent in the global econo#y o"

to#orro%.

The "ourth and "inal uadrant is the internal operations o" to#orro%. S)' has to i#pro$e

internal processes that use green co#puting technology, reduces their carbon "ootprint, and

pre$ents disruption o" their ser$ices. Achie$ing these #ilestones by using in"or#ation "ro#

shareholders %ill ensure the achie$e#ent o" the sustainable solution circle o" li"e. Although the

products are great, there is al%ays roo# "or i#pro$e#ent. Since the #aret is $olatile, S)'

needs to tae a proacti$e approach to achie$ing sustainability. .

Table 2

Sustainable Value Framework

To#orro% Today

:+ternal Strategy> 9reen Technology

Payo""> Repositioning

Strategy> Base o" Pyra#id

Payo""> 9ro%th3nternal Strategy> ?ini#ie 'aste

Payo""> 5ost Reduction

Strategy> Product Ste%ardship

Payo""> 3nno$ation

"rgument in Support of Conclusions

S)' has taen ad$antage %hen it co#es to i#ple#enting sustainable solutions and

progress. The co#pany has been one o" the top "i$e paint pro$iders o$er the last century. Their

gro%th and tra-ectory can continue %ith the de$elop#ent o" ne% inno$ati$e processes and

products. The co#petition %ill ha$e to "ollo% the lead o" S)' as they pa$e the %ay into the


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ne+t century %ith their arsenal o" products "or e$ery sector o" society. The co#bined leadership

%ithin the co#pany and their product reputation.


The i#plications "or S)' is that at so#e point in the "uture, they %ill be in a head to

head co#petition %ith The DuPont 5o#pany. Their co#petitors are also looing to e+pand and

hire top talent. 3t is in the best interest o" the co#pany that #anage#ent i#pro$e sustainable

solutions to #aintain the S)' legacy. They %ill ha$e to $eri"y that the right people are put into

the right positions to sti#ulate gro%th. Their success can be attained by internal as %ell as

e+ternal "actors as outlines in the sustainable solutions "ra#e%or.

Conclusions

The paint industry has se$eral co#panies that ha$e di""erent strategies, and $aried li"e

cycles all stri$ing to beco#e the nu#ber one global paint supplier. S)' has all the right

instru#ents in place to sti#ulate gro%th and achie$e long ter# sustainability. The #anagers at

S)' ha$e goals set in %hich %ill help the# achie$e the $isions o" the co#pany. Their ability to

#aintain and gro% %ould be greatly i#pro$ed using so#e o" the reco##endations presented in

this paper.

The custo#er ser$ice tea# needs to "urther engage their custo#ers %hile research and

de$elop#ent brings an $ariety o" ne% products to the #aret. The product engineers need to be

enticed through $arious "inancial incenti$es based on product creati$ity. They need to be allo%ed

ti#e each %ee to de$ote to their o%n product de$elop#ent. Though they ha$e a $iable business

#odel, there is al%ays roo# "or i#pro$e#ent to encourage gro%th.


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