...Executive Summary Rohm & Haas recently introduced a new product, Kathon MWX, in order to exploit an untapped portion (reservoir capacity under 1,000 gallons) of the biocide market. Even with limited competition within this segment, Kathon MWX has not been able to produce its annual target revenues, only capitalizing on roughly 6% of said target in a 5 month period. Large-scale distributors, who exhibit the most buyer power and influence over end customers in the industry, threaten manufacturer brand equity by relabeling all biocide maintenance products under their own brands. Even though Rohm & Haas does not allow distributors to change the label on Kathon MWX, the lack of end customer awareness for the manufacturer brands has detrimentally limited sales due to precedent relabeling habits in the industry. Rohm & Haas can achieve and possibly surpass its sales targets in the short-term by increasing price and incentivizing distributors with higher margins, and in the longer term by strengthening sales channel relationships with industrial supply houses and machine tool shops, as well as mitigating risk of brand cannibalization of other products by relabeling Kathon MWX. Analysis Kathon MWX At the end of December 1983, Rohm and Haas introduced Kathon MWX, a biocide, which is specifically geared toward smaller, individual tanks. Research shows that in best case scenario, Kathon MWX can save an end user up to 54% of annual cost when used. (See exhibit 1). However, despite...
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...The Museum Experience One of my favorite things to do when traveling in a new city is to visit the museums. I have never been to a city that did not offer the usual museum fare, usually in the form of the “Anytown Art Museum”, or the “Anytown Museum of Natural History”. While these types of museums house some incredible artifacts, and I do visit them often, I also like to seek out museums of a more unusual sort. Museums are mostly the same just about everywhere you go, both in the United States and Europe. They offer the visitor a glimpse into the past culture of any given city or country by displaying relics found throughout the world. But there are also many museums that showcase artifacts of the culture in a much more specific way. Some fine examples of these kinds of museums include the Pez Museum, close to San Francisco, dedicated to the little candy dispenser, the Muzeum hracek in Prague, dedicated to toys of the world, both past and present, the Dungeon, a history of Medieval torture, also in Prague, and the Liberace Museum in Las Vegas, dedicated to all things Liberace--and I mean all things. The Pez Museum is not actually in San Francisco, but is located south of the city in a town called Burlingame. If you are in the Bay Area for any reason, do not miss this museum! Remember when you were a little kid, and you loved to collect Pez dispensers? Well, times have changed, and now Pez collections mean big money, and big business. The most expensive Pez dispenser...
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...Executive Summary In July 2008, Dow Chemical announced an acquisition of Rohm and Haas, a specialty chemicals producer, in an attempt to implement its new strategy of pursuing high growth businesses. The financial crisis that hit in the fall and the termination of PIC joint venture called into question Dow’s ability to finance the deal. Based on the valuation models, paying $78/share for Rohm and Haas remained a good value for Dow post financial crisis as the combined company retained its ability to generate synergies. Dow should proceed with the deal as announced to prevent costly litigations and aim for maximizing long-term shareholder value. To avoid being downgraded to junk status and incurring other concerns of financial distress, Dow should attempt to renegotiate the terms of its financing, particularly its $13 million bridge loan. Table of Contents I. The Firms…………………………………………………...…….p. 3 a. Dow Chemical b. Rohm & Haas c. Petroleum Industries Company II. The Acquisition……………………………………………..……p. 3-5 d. The Rationale e. The Valuation f. The Financing III. The Risks……………………………………………………….…p. 5 IV. The Financial Crisis……………………………………….……...p. 5-7 g. The Macroeconomy and Industry h. The Firms i. The Post-Crisis WACC j. The Post-Crisis Valuation k. The Post-Crisis Financing V. The Recommendations……………………………………………p. 7-8 l. The Options m. The Recommendations ...
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...Synopsis: Dow is acquiring Rohm and Haas from Ingersoll-Rand at an agreed price per share of $78. However, a deal with Kuwait’s Petrochemical Industries Company, which was supposed to generate $7 billion of cash to be used to finance the acquisition, had recently fell-through. The hiccup has led to Rohm taking legal action to force Dow to complete the acquisition as required by the merger agreement. The standalone value of Rohm’s share price is currently at $46.77 while the synergies could almost double that to $94.63 per share. By going ahead with the deal Dow would need to raise capital and that might lead to a lower bond rating. 1. Why does Dow want to buy Rohm and Haas? Dow believes the acquisition of Rohm and Haas would be a defining step in their transformational strategy to shape the “Dow of Tomorrow”. The acquisition of Rohm and Haas would provide a strong fit strategically and operationally for Dow. The combined companies would bring the best-in-class products and technologies, broad geographic reach and strong industry channels to create an outstanding business portfolio with significant growth opportunities. Rohm would provide Dow with an expanded network into emerging markets thereby increasing Dow’s sources of revenues for the future as well as adding a strong and experienced leadership team with a culture of customer focus and innovation. Together the geographic strengths of each company would help realize economies of scale through the combined R&D,...
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...Dow’s Bid for Rohm and Haas 1.Why does Dow want to buy Rohm and Haas? Dow, a producer of low-valued cyclical commodity chemicals, had future aspirations of being not only the largest but as well the highest valued chemical company in the United States. Its strategy was simple: to be an asset-light company with extremely high growth potential fuelled through advanced technology, geographical reach, strong industry channels and an overall switch in to the advanced specialty chemical and materials market. As a result when the option to purchase Rohm and Haas was put to market Dow jumped immediately on the opportunity. Rohm and Haas brought with it mass amounts of experience in the specialty chemical business, strong management and a diverse portfolio of businesses that Dow was searching for. As well it provided an establish foundation within the specialty market in which Dow could further mould to fit within its general corporate structure. In a perfect world, Rohm and Haas was the perfect match for Dow’s two tiered growth strategy, and appeared to be in a vulnerable state with the sudden announcement of its sale. Was the $78 per share bid reasonable? In valuing Rohm and Haas at the time of the bid we believe the price of $78 per share was in fact reasonable. In our calculation of the standalone Rohm and Haas value we used the company’s projected FCF from Exhibit 7a with the provided WACC of 8.5% to complete the DCF. Although the provided calculation...
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...Dow Chemical’s Acquisition of Rohm & Haas (2008-2009) MGT 4066 Professor Jayaraman December 7, 2010 Joseph Dennis Kunal Parbadia Robert Pirkle Will Weston Yash Ghogre Overview In mid 2008, Dow Chemical found itself in an industry that had recently been experiencing some consolidation. As one of the giants in the chemical material industry, it needed to maintain its position as an industry leader or else it would probably lose its foothold near the top. Then there is the target, Rohm & Haas, a smaller chemical materials firm, yet still considered a rival of Dow Chemical. Both companies had been in operation for a combined 200 years and have been creating innovative materials that each and every one of us see or use in our everyday lives without even noticing. On July 10, 2008, Dow Chemical announced the acquisition of Rohm & Haas, which had been approved by the Rohm & Haas Board of Directors. This deal occurred during one of the toughest economic times in recent history, which eventually had a profound effect on not only the financial structuring, but also the final execution of the deal, as you will see in the pages to come. About Dow Chemical The Dow Chemical Company was founded on May 18th, 1897 when Herbert H. Dow established a plan to both manufacture and market bleach and potassium bromide on a factory scale level. In the early years of the company’s existence there was a series of pricing wars between both British and German manufacturers of bleach...
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...Why does Dow want to buy Rohm and Haas? Was the $78 per share bid reasonable? Why was the deal structured as all cash? Dow Chemical (“Dow”) wants to acquire Rohm and Haas (“Rohm”) for its strong operational and strategic fit. When Liveris became Chairman and CEO of Dow, he shifted the focus to growth and profitability by becoming an asset light producer of commodity chemicals and becoming a high-valued-added producer of specialty chemicals and advanced materials. This combination is a step in that direction that would bring together best-in-class products and technologies, broad geographic reach, and strong industry channels for growth opportunities. Rohm would also expand Dow’s network into emerging markets and alter Dow’s earnings profile by increasing the growth rate and reducing the cyclicality of the chemicals portfolio. The growth synergies driven by expanded product portfolios, innovative technologies, increased geographic reach, and improved market channels were expected to generate $2 - $2.6 billion in additional value. Also, after a one-time restructuring cost of $1.3 billion, Dow expects to generate at least $800 million in annual cost synergies. On a Rohm stand-alone basis, the free cash flow analysis (Exhibit 1) shows that Rohm has an implied per share price of $46.48, which is roughly in line with Rohm’s stock price one day before deal announcement of $44.83. However, when factoring the $11.78 in growth synergies and $34.84 in cost synergies, it yields an implied...
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...On October 14, 2016, Mr. Benjamin Haas, a J.D. Candidate at Stanford Law School, published the piece “Gathering Intelligence Is Dangerous. So Is Not Reading It”. Starting with a claim of fact, President-elect Donald Trump has chosen to receive only one intelligence briefing each week, Haas states the problem. Haas then transition to a claim of value depicting Trump’s choice as a bad decision plus a departure from the expected for a president. Haas ends with a claim of policy explicitly stating Mr. Trump should be able to listen to a daily briefing with ease. Haas argues that Trump shouldn't limit his intelligence briefings to once a week due to Trump’s inexperience and to honor sacrifices made to obtain information for his use. The piece begins having a diplomatic tone as Haas evaluates the situation. In his evaluation, Haas notes that Trump’s decision was only made by a former president, Richard M. Nixon, with extensive foreign policy experience before his election. This comparison has an appeal to logic as Nixon had been a lawyer, congressman, and vice president before...
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...Group #9 Dorian Puentes 009193325 Rogelio Ruiz 008672298 Alex Quijije 008846316 Kyle Rahill 008743161 Jose Rivera 008864594 Contribution Made by Each Member: “Moral Aspect’s”: Dorian Puentes “Social Aspect’s”: Rogelio Ruiz “Legal Aspect’s”: Alex Quijije “Pioneer Aspect’s”: Kyle Rahill “Environmental Aspect’s”: Jose Rivera California State University, Long Beach College of Engineering ENGR101 SEC09, Fall 2010 November 5, 2010 Blimps are now going to have a great impact on today’s society. Lockheed Martin is developing a HAA (High-Altitude Airship) funded by the Missile Defense Agency. The Pentagon plans to spend $400 million on a very high efficient airship. Lockheed Martin’s HAA is solar powered, helium-filled airship that will fly above the jet stream. HAA will be very beneficial because it will be used for surveillance purposes, weather observation and mobile telecommunications platforms. The HAA sounds like a very efficient airship, but is it efficient when it comes to the environment or society? Is the airship going to have a positive or negative impact? Is Lockheed Martin making everything legal? Lockheed Martin is a global security and information technology company with 136,000 employees worldwide. Their primary customers are the U.S. Department of Defense and U.S. federal government agencies. They design, produce, and maintain advanced technology systems, products, and services. The current company was formed in 1995 with the merger...
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...own judgments and decisions on a specific clinical situation (Haas & Loik, 2012). The objective of this specific guideline that this paper will review is providing evidence for weaning or discontinuing the mechanical ventilator. The purpose of implementing a guideline...
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...Running head: UNIT 3 ASSIGNMENT MT450: Marketing Management Tim Byington Haas Chiropractic Clinic Haas Chiropractic Clinic and the services that they provide is the chosen subject for this paper. The four P’s will be discussed and how they relate to Haas Chiropractic Clinic. They include product (service), place (distribution), promotion and price. The first of the four P’s is product or service. According to the text the product includes “not only the physical unit but also its package, warranty, after-sale service, brand name, company image, value, and many other factors (Winer & Dhar, 2011).” For Haas Chiropractic Clinic this includes the many services they offer, their image as a clinic that is always giving back to the community and the value of their services. At the clinic there are several services that are offered. Obviously, this includes chiropractic care such as adjustments, spinal decompression, Graston and corrective care. They also offer corrective exercises, lifestyle advice, nutritional counseling. The physiological therapeutic procedures include interferential electrical muscle stimulation, ultrasound and mechanical traction (www.haaswellness.com). Haas is constantly finding new ways and continuing to give back to the community. They do this is several way several. One is to have fundraisers for things such as school supplies and coats for kids. This last fall they raise $2500 worth of school supplies. As of now, they...
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...Rohm and Haas is a diversified chemicals company. Its industrial chemicals division manufactures maintenance biocide products to the metal working industry. The company enjoys a healthy 30% market share with its Kathon 886 MW in the Central Systems segment. Rohm & Haas has recently launched Kathon MWX to target 150,000 customers in the Individual systems segment where the market for biocides is underdeveloped and has little competition. A large part of the customers use substitute products such as deodorants and bleaches with little effect on microorganisms. The company estimates the market size for the individual segment to be at $20 million and aims to achieve $0.2 Million revenues from this segment in the first year. Despite a superior product, the sales of Kathon MWX reached a meager 6 % of the annual plan in first five months. Rohm and Haas wishes to re-evaluate its strategy in order to tap this huge segment to significantly increase sales volume and market share of Kathon MWX. Rohm and Haas plans to enhance its allocation for distribution and marketing spend of the Kathon MWX. This would result in additional revenue of 0.1 million. This target would be achieved by a combination of a revamped distribution network for Kathon MWX, focused promotion campaign and sampling. Can Rohm and Haas increase its market share ad revenues in the maintenance biocide market with its current product line? The sales of Kathon MWX have barely touched 6% of the annual targeted...
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...Haas School of Business, U.C. Berkeley NOKIA – It’s tough being #1 NOKIA – It’s tough being #1 HAAS SCHOOL OF B USINESS, UC B ERKELEY M ARKETING FOR HIGH TECH ENTREPRENEURS FALL 2001 ANDREW ISAACS Prepared by: Jill Alvidrez, Peimin Chi, Nipul Chokshi Sarang Dalal, Steve Sinha, Rahul Shah, Nancy Suh 1 Haas School of Business, U.C. Berkeley NOKIA – It’s tough being #1 2 Haas School of Business, U.C. Berkeley NOKIA – It’s tough being #1 TABLE OF CONTENTS INTRODUCTION ........................................................................................................................... 4 INDUSTRY OVERVIEW................................................................................................................ 5 VALUE CHAIN .................................................................................................................................. 5 PLAYERS .......................................................................................................................................... 5 INDUSTRY GROWTH RATES .............................................................................................................. 6 NOKIA MARKETING STRATEGY............................................................................................... 7 INDUSTRY TRENDS.................................................................................................................... 10 KEY D ECISIONS FACING NOKIA ....................
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...revised May 25, 1993, Rohm and Haas was a leader in chemical technology. One of its four main business segments was Industrial Chemicals, where its strongest product is Kathon 886 MWX capturing 30% of the maintenance biocide market for large systems. Customers who were satisfied with the performance of this product asked for a “convenient, safe-to-use version for their smaller reservoirs” (p4). In December of 1983, Rohm and Haas launched a brand extension called Kathon MWX, designed to kill microorganisms in metalworking fluids for customers with small-capacity tanks. The new product was distributed by large industrial formulators along with the existing Kathon 886 MWX, but sales volume for the product was only 6% of what was expected. Joan Macey, the marketing manager for Rohm and Haas explained the poor sales as low awareness of the brand and its usefulness along with the lack of competition to build demand. The real problem however, was that Kathon MWX was not positioned correctly. Rohm and Haas was an industrial supplier that was trying to sell a consumer product. Because of the pricing scheme, the customer had a very low perception of its value. Furthermore the distribution channel was not appropriate for this type of product. Just because Kathon MWX may have looked good on paper, it didn’t mean the company should have hastily launched the brand. In this situation, more effective leadership would have helped Rohm and Haas avoid such a negative outcome...
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...My desired post MBA role after graduating from UC Berkeley-Haas is to work as a business designer for IDEO, preferably in my home city of Chicago. I first heard of IDEO when they came to speak at the University of Michigan’s engineering campus about human to computer interaction, and the presentation was absolutely fascinating. I have been hooked on the company ever since, even picking up a copy of The Little Book of IDEO that has helped to drive many of my product design decisions over the past few years. The seven values that are a part of the culture at IDEO are to be optimistic, collaborate, embrace ambiguity, learn from failure, make others successful, take ownership, and talk less, do more. These beliefs are instilled in a corporate environment that focuses on a human-centered approach to innovation as the designs that they create are ultimately geared toward helping people. Those at IDEO seek to challenge themselves to explore the unknown, similar to Haas, and are constantly developing new concepts and improving their processes. For these reasons, an MBA from Haas would prepare me to work at IDEO as they share and champion similar principles. In addition to sharing the key ethics that are a part of IDEO culture, my engineering background in combination with my professional experience make me a compelling candidate for IDEO. My professional experience has allowed me to acquire the technical expertise required in working with sophisticated mechanical and software...
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