The chemical industry is truly a global industry. It has major strongholds throughout the world, in particular Western Europe and the United States of America. Large chemical sectors have also been created in Saudi Arabia and India, Russia is a major producer in Eastern Europe, whilst in the Far East, China, South Korea and Taiwan are important producers (Business Ratios, 2001). The main focus of the industry is the processing and manufacturing of raw materials and the supply of semi-processed raw materials to other industries. Marketing therefore concentrates on the business-to-business sale of commodity products, with demand being dependent on global economic factors and the level of consumer expenditure - particularly in developed countries (Keynotes, 2000). Due to its vast geographic spread, the industry is relentlessly impacted by the internationalisation of business and its players operate under vastly differing socioeconomic climates. Chemical producers in the West are coming under increasing pressure to match the costs of their global rivals, particularly China, but with substantial differences in environmental protection, government intervention, labour costs and health and safety issues, this is a major challenge. Therefore the objectives of this assignment will be to: 1. Review the trends and developments in the fine chemicals industry. 2. Evaluate the trade and investment theories for the Fine Chemicals Industry in China. 3. Investigate the possible forms of market entry strategies. 4. Consider the strategy and structure of a typical Western company and how it should react. (As Bayer Chemicals (BCH) can be regarded as a major player in the global chemicals business it will be used to illustrate this) 5. Make recommendations, based on the findings of the assignment.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Review of Fine Chemicals Industry Environment
- Definition of Fine Chemicals Industry and Market
- Market Structure
- Global Market Volumes
- Trends and Developments
- Trade And Investment Theories for Fine Chemicals in China
- How well do Trade and Investment Theories explain growth
- Investment Theories
- Market Entry Strategies of Western Fine Chemical Companies in China
- Strategy and Structure of BCH
- Organisation
- Strategic Options
- Strategic Perspective
- Conclusion And Summary
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment aims to explore the challenges faced by Western fine chemicals companies due to the growth of China's chemical industry. The objectives are to review industry trends, evaluate trade and investment theories applicable to China's fine chemicals sector, investigate market entry strategies for Western companies, and analyze the strategy and structure of a typical Western company, using Bayer Chemicals as an example.
- Globalisation and its impact on the chemical industry
- Trade and investment theories in the context of China's growth
- Market entry strategies for Western companies in China
- Strategic options for Western fine chemicals companies
- The role of competitive advantage in the fine chemicals industry
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter provides an overview of the global chemical industry, highlighting its geographic spread and the competitive pressures faced by Western producers due to the rise of China. The second chapter delves into the fine chemicals industry, defining its scope, market structure, global volumes, and key trends. The third chapter examines trade and investment theories relevant to the fine chemicals industry in China, assessing their explanatory power.
The fourth chapter focuses on the market entry strategies employed by Western fine chemicals companies in China, exploring various approaches and their advantages and disadvantages. The fifth chapter analyzes the strategy and structure of Bayer Chemicals (BCH), a major player in the global chemicals business, examining its organizational structure, strategic options, and strategic perspective.
Schlüsselwörter (Keywords)
The key topics and concepts explored in this assignment include the fine chemicals industry, globalization, trade and investment theories, market entry strategies, competitive advantage, China's chemical industry, and the strategic challenges faced by Western companies in a rapidly evolving global market.
- Quote paper
- Michael Rockel (Author), 2004, Internationalisation: the strategic challenge for Western fine chemicals company Bayer Chemicals arising from the growth of China., Munich, GRIN Verlag, https://www.grin.com/document/35882