DuPont Essays - Chemical Companies, DuPont, Bronfman Family, Seagram

DuPont An investment analysis DuPont makes a variety of high-value products for industry today, including polymers, chemicals, fibers, and petroleum products...products for agriculture, electronics, transportation, apparel, food, aerospace, construction, and health care. DuPont serves customers in these and other industries every day, offering "better things for better living" as the company prepares to begin its third century of scientific, technological, commercial, and social achievement. DuPont is a research and technology based chemical and energy company with its annual revenue exceeding $39 billion. Eleuth?re Ir?n?e du Pont de Nemours, a French immigrant, established DuPont in 1802 in a small Delaware town. E.I. du Pont was a student of Antoine Lavoisier, the father of modern chemistry, and when he came to America he brought some of the new ideas about the manufacturing of consistently reliable gun powder. His product ignited when it was supposed to, in a manner consistent with expectations. This was greatly appreciated by the citizens of the growing nation, including Thomas Jefferson, who wrote thanking du Pont for the quality of his powder, which was being used to clear the land at Monticello. Many other heroes of early America owed their success, and their lives, to the dependable quality of DuPont's first product. This represents a good, strong start for a company. DuPont, which is moving through the last decade of the twentieth century and toward its third century, emphasizes several things; competing globally; sharpening its business focus; increasing productivity; committing to safety, health, and environmental excellence; and continuing to extend its significant science and technological achievement. One of DuPont's major strategies is to focus on businesses in which DuPont has core competencies, where DuPont can build competitive advantage. The most notable example of this focus was the 1993 transaction in which DuPont acquired ICI's nylon business and ICI acquired DuPont's acrylics business. This strengthened the company's position in the global nylon business while divesting a business that no longer fit its portfolio. Another major factor in the transformation of the company in the1990s was the focus on reducing costs and improving productivity. This was necessary to give the company the flexibility for competitive pricing and to grow market share and earnings. DuPont had strong plants in several countries around the world for many years, and their globalization trend continued in the 1990s. New plants opened in Spain, Singapore, Korea, Taiwan, and China, and a major technical service center opened in Japan. In 1994, a Conoco joint venture began producing oil from the Ardalin Field in the Russian Arctic--the first major oil field brought into production by a Russian/Western partnership since demise of the Soviet Union. A further major development was the redemption of 156 million DuPont shares from Seagram for $8.8 billion in cash and warrants --- one of the largest stock redemptions in history. This large block of shares was redeemed at a 13 percent discount to market price. While DuPont later sold some new shares, there are 18 percent fewer shares currently outstanding than just prior to the redemption. This resulted in a significant opportunity for wealth creation for our stockholders. The share redemption was made possible by four years of cost reduction, productivity improvement and organizational change that have made DuPont strong financially and allowed them to move decisively and quickly. The DuPont that emerged from the company's transformation in the 1990s has often been described by people inside and outside the company as "the new DuPont." This characterization is only partly appropriate, because while DuPont has changed, there are many things that remain the same. The core competency in science and technology, the commitment to safety, the concern for people, the feeling of community, the emphasis on personal and corporate integrity, the future focus, and indeed the willingness to change. DuPont is a company not only out for their own interest, but also for the best interest of the world. What has always set DuPont apart is the quality of the people, people committed to making life easier and better for everybody, proud to be a part of an enterprise making "better things for better living." That was true in 1802. And it is just as true today. In the second quarter of 1995 DuPont reported earnings per share of $1.70, up 47 percent from the $1.16 earned in the second quarter 1994. Net income totaled $938 million, compared to $792 million earned in 1994. Both earnings per share and net income increased 27 percent."These outstanding results continue to reflect strong revenue gains and ongoing productivity improvements," said DuPont Chairman Edgar S.Woolard Jr. Sales for the second quarter were $11.1 billion, up 9 percent from prior year. The third quarter of the 1995 business year led DuPont to a $1.38 per share earning. This number exceeded the $.95 earned in the third quarter of 1994 by more than 45%. Net income totaled $769 million compared to $647 million earned in 1994. Sales for the third quarter were

Procurement Strategies for Companies when Encountering Natural Disasters

Procurement Strategies for Companies when Encountering Natural Disasters Introduction The concept of procurement directly relates to the process of acquiring goods or services whether (raw or manufactured) in a way that enables a company to meet the needs of its clientele in terms of the quality of the product and quantity it is needed in.Advertising We will write a custom case study sample on Procurement Strategies for Companies when Encountering Natural Disasters specifically for you for only $16.05 $11/page Learn More Through the analysis of ( ), it can be seen that procurement is an essential process in all company operations since not all companies are able to extract raw materials, are capable of processing it into different components and have the capacity to assemble it into a viable product. It is based on this that when examining the manufacturing industry as a while it can be divided into 3 distinct types of companies: A raw materials supplier A components manufacturer End product manufacturer Manufacturing industry supply chain progression Companies are separated into these distinct categories based on the need to focus on a type of a specialization that they are good at rather than attempting to diversify itself into all aspects that go into creating a finished product. By doing so, this enables a company to significantly reduce its cost of operations while increasing its capacity to be able to develop better product types. Process in creating a finished product A finished product can this be considered as the culmination of a company utilizing different suppliers and using its own manufacturing processes to create products to be sold. For example, one of the most popular gadgets that has been sold within the past 5 years has been the Apple iPad, yet, the company itself merely sourced the materials needed in its constructions from other companies within its supply chain iPads are primarily manufactured in China by Foxconn (one of the largest electronic manufacturers in the world) with each in dividual part being purchased from different parts suppliers. The processor utilized within the tablet was purchased from Intel, the motherboard was bought from local suppliers in Taiwan, the memory components that go into it were from suppliers in China, and the solid state hard drive was from Seagate. In essence, nearly every single part that went into you average Apple was the result of procuring individual product components from a robust supply chain. Process Components Involved in the Development of the iPad The parts manufacturers involved in the process of creating an iPad in turn sourced the needed materials that went into their own products from their own raw material suppliers as well.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This process is known as a procurement supply chain that starts from raw material suppliers and ends with the final product on the she lves of a store. Do note though that this procurement supply chain is not primarily limited to consumer electronics, it can also include manufactured agricultural goods and most of the everyday items that people see around their home. The reason this is being brought up is due to the fact that while each type of product has its own manufacturing process and supply chain, all of them have the same characteristic in that they depend on the integrity and reliability of their respective procurement supply chains in order for their product to be created (Shuguang, 2010). Supply Chain Concept Due to the necessity of reliability in the provision of raw materials and equipment, this immediately brings up the question of what would happen a supply chain should an integral link in the process be removed due to an unforeseen external event (Shuguang, 2010). The end result would of course be obvious, the total and subsequent collapse of the chain which would prevent a product from being complet ed. What must be understood is that the inherent problems with doing business in the current global system is the fact that unforeseen circumstances such as natural disasters have severe ramifications on the supply chains for most corporations. Analysis Method Diagram Production processes are vulnerable due to their dependence on a continuous stream of raw materials and components (Stecke Kumar, 2009). Without raw materials, a capable labor force and a constant supply of energy in order to keep production facilities running, the end result is usually the entire system falling apart the seams. All aspects of the product development supply are necessary to ensure that products can be created to meet consumer demand. The inherent problem though with natural disasters is the fact that they affect all aspects of the production process that was just mentioned in unique ways and, as a result, when they occur this creates considerable difficulties for companies. Effect on Supply Lines When natural disasters occur near areas where production facilities are present, the supply of raw materials that goes into the production line stops completely. Natural disasters prevent accessibility due to the destruction of roads and bridges which makes it difficult if not impossible to get the necessary raw materials to the factories they are destined for (Bunkley, 2011).Advertising We will write a custom case study sample on Procurement Strategies for Companies when Encountering Natural Disasters specifically for you for only $16.05 $11/page Learn More It should also be noted that companies would also be reluctant to send trucks to areas immediately after a natural disaster due to the possibility of a sudden recurrence. This precaution is actually justifiable as evidenced by a massive tsunami came that directly hit the Japan since after an earthquake had struck (Japan Earthquake, 2011). It should also be noted that raw materials do not always come from lo cal suppliers, rather, they can also come from international sources (as seen in the relationship between China and Australia involving iron ore and coal) (Financial performance, 2006).. The problem with this is that the various docks and piers designated for the offloading of cargo may have been affected by the natural disaster itself which creates a certain amount of difficulty in terms of getting the raw materials off of a ship and towards a production complex. The raw material suppliers themselves could have also been affected by the tsunami resulting in their own facilities receiving considerable damage which further complicates their capacity to be able to send raw materials to their various clients (Winslow, 2011). Effect on Production Capability When the 2011 earthquake and tsunami struck Japan, it revealed a vulnerability that modern day methods of production had wherein even though a facility is located hundreds of miles away from where a disaster actually happen, there is still the possibility of that particular disaster affecting the ability of that factory to produce products. This is due to the effect natural disasters have on power grids as well as the fact that it can prevent the delivery of essential parts and supplies (Lohr et al., 2011). It should also be noted that due to the earthquake and tsunami as well as the damage to the Fukushima dai-ichi nuclear reactor, factories located as far away as Tokyo had to slash to lower their production capacity to less than half of what they were normally capable of accomplishing on a daily basis due to issues related to worker safety, the loss of essential parts from Mitsubishi Heavy Industries that had factories near the disaster zone as well as intermittent power outages (Lohr et al., 2011). Factories located within Tokyo and various surrounding districts were thus unable to meet their production targets for the month which created problems for buyers from other countries such as the U.S. and China wh o relied on the scheduled delivery of essential parts and components (Bunkley, 2011). Sample Situation The 2011 earthquake in Japan and the subsequent tsunami that followed created numerous problems for the Japanese manufacturing industry located near Sendai and Fukushima (Bill, 2011).Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The tsunami destroyed several integral power plants and cables in the area which prevented numerous factories from operating within the immediate vicinity. The resulting destruction of several roads prevented raw materials froming going to the factories that needed them. The death of several family members prevented a large percentage of the workforce from going to the factories. The radiation scare from the Fukushima Dai-ichi nuclear power plant made the remaining workers unwilling to go to work due to the threat of radiation poisoning (Kluger et al., 2011). Examining the Issue The issue most companies have with natural disasters is that they stop the process of production in businesses located in the area of a disaster by affecting not only the workers, but also the facilities themselves and the capacity of raw material; suppliers to gather the necessary supplies for their clients. The degree of damage to production facilities can thus be considered as inversely proportional to the strategy of procurement that companies will apply. As such, this will be elaborated on in the next section in order to get a better idea of the strategies that can be employed after a disaster occurs. Minor or no Damage to Production Facilities Minor or no damage is the best outcome after a natural disaster since this ensures that the supply line of a company can be restored within a matter of two to three weeks while the company itself deals with the aftermath of the disaster (i.e. repairing facilities, replacing equipment, etc.) (Wimmer, 2000). This also comes in the form of restoring the delivery of raw materials to the factory, as well as encouraging workers that have not died to come back to work as well as having to send condolences to the families of workers that had died during the course of the disaster (Wimmer, 2000). Medium Scale Damage to Facilities During instances of medium scale damage to production facilities, this can come in form of light to moderate damage of the facility, the surrounding machinery and possible flooding in certain areas which will need to be dealt with (Chopra Sodhi, 2004). In the case of medium scale disasters, it can take up to one to two months to get the factory working again. For buyers, this means that they can either wait for production to start back up or they can switch to a temporary supplier until such a time that their original components supplier can re-establish itself in their supply line (Financial performance, 2006). Large Scale Damage to Facilities Large scale damage to production facilities means the destruction of the building itself along with nearly all of the factory’s production equipment and machinery. During such instances, it is unlikely that a company will be able to supply anything for at least a year or more due to the necessity of having to rebuild their facilities that were destroyed (Financial performance, 2006). For buyers, this means re-establishing a new supply line with a comp letely different company. Summary There is an old saying that states that you should not put all your eggs in one basket, what this means for the strategy of procurement in light of the possibility of natural disasters is to diversify sourcing strategies in order to prevent the possibility of being supply blocked There are several possible procurement strategies that could be employed in order to diversify supply lines for products, however, while each method does have its own merit, it also comes with several negative aspects that should be taken into account before creating a procurement strategy that centers around them. Ethicality Statement The research process for this paper primarily consisted of document analysis in order to gather the necessary facts and figures. During the entire process of research and examination, the researcher followed proper research ethics by: Utilizing only relevant academic literature for examination Checking alternative sources of information to e nsure that the information being utilized is accurate Implementing proper citation and acknowledge for the instances where information from relative academic sources were utilized In no way were any research subjects (though none were utilized) harmed during the process of data collection. None of the information utilized within the study has been falsified in any way. Overall, the research can confidently state that through the aforementioned practices that were implemented, this research study has followed proper ethical research guidelines in researching and presenting information for this report. Client Report Possible Procurement Strategies to Avoid Supply Problems due to Natural Disasters The first strategy that has been developed by this report would be to diversify the supply of integral components through several suppliers in diverse regions and countries instead of a single main supplier for the component (Perry, 2007). The advantage of this method is that should the area of one supplier be affected by a natural disaster, the remaining supply lines would still be viable and could â€Å"pick up the slack† so to speak of the lost supply line (Perry, 2007). One problem with this method is the fact that by separating the amount of components supplied through several companies, the company purchasing them actually loses out on savings from buying in bulk that could have come from ordering from a single company (Dillon Mazzola, 2010). Based on this, procurement strategies in the future will need to take into account what they desire out of their supply lines, either constant supply reliability through diversification of buying strategies or savings through concentration in a single company (Dillon Mazzola, 2010). Another problem to take note of when it comes to supply diversity is the possibility of shifting quality standards when sourcing from different companies from different locations. Companies have their own set of quality standards, busine ss culture and safety regulations that they adhere to depending upon the region in question. For example, companies within China have a much lower degree of corporate social responsibility as compared to companies within Japan, the U.S. and various European countries. Their production processes often do not take into account the subsequent environmental impact of heavy industrial manufacturing processes which enables them to use procedures that would seem environmentally unethical in companies within countries with strong standards of corporate social responsibility. Sourcing the same type of component from Germany, China and Japan would result in two distinct differences, namely: the price of the component and its inherent standard of quality (Manuj Mentzer, 2008). What this means for a company that is attempting to diversify its supply chains is that there would be a distinct difference in cost between the parts supplied as well as overall quality (Manuj Mentzer, 2008). This wou ld result in the components of the same product being invariably better or worse than others. This of course creates a problematic situation for a companys quality standards since the differences in component quality have to be taken into account during the quality control process. Another possibility that could be taken into consideration is that assuming the quality standards of the suppliers a company is sourcing a single component from are the same the company could merely source the same component from different locations to avoid interruptions in the supply chain. The inherent problem with this situation is the differences in cost due to the distance of delivery. If a company were to source products from different suppliers yet all of them are located in the same general area this makes the concept of supply diversity useless since they would all be hit by the same natural disaster. One method around this would be source products from different regions or better yet different countries (Skoufias, 2003). The advantage of this method is that it would prevent natural disasters from hitting all suppliers at one time. As mentioned earlier, the problem with this is the differences in overall costs in delivery with some locations that are nearer obviously costing less than those that are far away. In cases such as this, companies would then choose to have a majority of their supplied components coming from locations that are nearby thus lowering the cost of transportation (Skoufias, 2003). In this situation, it is assumed that all components cost the same and that it is the cost of delivery that causes differences in prices. Another approach to the problem comes in the form of simply obtaining suppliers from locations that are not prone to natural disasters thus there would be little risk of disruptions. While this method of procurement is sound, there is still a problem as to whether there would actually be a components manufacturer in an area that is not easi ly affected by natural disasters. Work Log Work Log 1 During this week it was determined that while there are a variety of possible solutions available to prevent interruptions in the supply chain, they are not without significant setbacks. The inherent problem with trying to prevent any and all supply chain interruptions while taking into account the possibility of natural disasters is the fact that there are too many factors at work to actually create a 100% effective plan that can mitigate all problems. It was discovered that the best possible solution would be diversify the supply chain to such an extent to ensure that production does not stop completely should a supplier be affected by a natural disaster. Work Log 2 While it was mentioned in the earlier work log that diversification would help to reduce the potential threats brought about by natural disasters, it was determined that this would cause problems in terms of profitability as compared to sourcing from a single suppli er. The fact remains that anchoring a supply chain to a single lone supplier can and will cause problems to a buyer should an outside event affect their production capability as seen in the case of Apple Incorporated and their suppliers in Japan. Work Log 3 Research into possible areas not directly affected by natural disasters shows that areas located in the Middle East have fewer natural disasters as compared to other locations around the world. Unfortunately, their industries are neither agriculturally nor industrially based and, as such, would prove to be viable locations for sourcing only if a company was dealing with petroleum based products. If not, they would not prove to be useful at all. Work Log 4 In this work log, the viability of sourcing from a single supplier was examined. Unfortunately, as it was stated earlier, this means the supply line is isolated to that particular supplier and should anything happen to that company as a result of a natural disaster the productio n capabilities of the company sourcing that particular component would grind to a halt. Overall Summary Through this activity, I have come to learn that businesses do not operate within a vacuum and, as such, business managers and product sourcing specialists need to take into consideration a plethora of different factors when it comes to ensuring the integrity of their respective supply chains. While natural disasters cannot be anticipated in their entirety, the fact remains that plans can still be established which should help to lessen their impact on a company’s supply chain. Reference List Bill, O 2011, ‘Japan Hit by Massive Earthquake’, OReilly Factor (FOX News), Academic Search Premier, EBSCOhost. Bunkley, N 2011, ‘Japans Automakers Expect Longer Delays’, Academic Search Premier, p. 1. Chopra, S, Sodhi, M, 2004, ‘Managing Risk to Avoid Supply Chain Breakdown’,  MIT Sloan Management Review, vol. 46, no. 1, pp. 53-62. Dillon, R, Mazzola, J 2010, ‘Management of disruption risk in global supply Chains’, IBM Journal of Research Development, vol. 54, no. 3, pp.1-9. Financial performance 2006, ‘Supply chains after disruptions an event study’, Supply  Chain Management, vol.11, no. 1, pp. 25-33. Japan Earthquake, 2011, ‘Thoughts and Implications’, Emerging Markets Monitor, vol. 16, no. 47, pp. 1-3. Kluger, J, Harrel, E, Powell, B, Walsh, B 2011, ‘Fear Goes Nuclear’, Time, vol. 177, no. 1, p. 34. Lohr, S, Bunkley, N, Kopytoff, V 2011, ‘Supply Disruptions of Power and Water Threaten Japans Economy’, Academic Search Premier, p. 1. Manuj, I, Mentzer, J 2008, ‘Global supply chain risk management strategies’,  International Journal of Physical Distribution Logistics Management, vol. 38, no. 3, pp.192-223. Perry, M 2007, ‘Natural disaster management planning A study of logistics managers responding to the tsunami’, Intern ational Journal of Physical Distribution   Logistics Management, vol. 37, no. 5, pp. 409-433 Shuguang, L, Jun, L, Hayes, K 2010, ‘An agile and diversified supply chain reducing operational risks’, Competitiveness Review, vol. 20, no. 3, pp. 222-234. Skoufias, E 2003, ‘Economic Crises and Natural Disasters Coping Strategies and Policy Implications’, World Development, vol. 31, no. 7, p. 1087. Stecke, K, Kumar, S 2009, ‘Sources of Supply Chain Disruptions Factors That Breed Vulnerability and Mitigating Strategies’, Journal of Marketing Channels, vol. 16, no. 3, p. 193. Wimmer, S 2000, ‘Procurement Pros Stay Afloat in Wake of Natural Disasters’,  Government Procurement, vol. 8, no. 2, p. 7. Winslow, G 2011, ‘Japan Quake Shakes TV Equipment Suppliers’, Multichannel News, vol. 32, no. 12, p. 25.

Risk of Nuclear Power Essay Example | Topics and Well Written Essays - 250 words

Risk of Nuclear Power - Essay Example For power generation, nuclear reactors use radioactive materials as fuel. From fuel enrichment stage its waste and even after that the radioactive materials remain active in emitting radiation. During fuel enrichment, transportations, handling, reactors operation and waste storage process a minor leakage of nuclear radiation brings sever health and environmental issues. The exposure from low to medium radiation badly damages the biological cells resulting different types of cancer and genetic diseases in progeny. Very high radiation exposer severely damages the most of human body systems stopping all functions that leads to an immediate death (Cohen n. d). A major risk associated with nuclear power generation is nuclear reactors core or fuel meltdown due to extremely high temperature. Though they are very few incidents of nuclear reactor meltdown yet they result number of casualties along with sever environmental consequences. Also, in case of natural calamity, the issues to control and shut down of nuclear reactors also impart another risk associated with nuclear power. Additionally, improper storage and handling of used reactors fuels also pose a threat both to humans and environment (Cohen n. d). The information given in article is relevant to the information presented by Trfil and Hazen in their book; The Sciences: An Integrated Approach in many respects. Both the works highlighted the radiation, its types, applications and the risks associated with radiation. Also detail discussion about the nuclear reactors, their structure and construction and types of nuclear reactions has been given in article just similar to the course work given in above mentioned book written by Trefil and Hazen (2007). The importance of above cited article is attributed due to fact that it gives detail information about nuclear radiation, the nuclear power generation and