Free Essay

Dupont Case

In: Business and Management

Submitted By anthonytran08
Words 2240
Pages 9
Introduction
The products include Pioneer and other brands of seeds, insecticides, fungicides, herbicides, insect control products, and plant growth regulators.
Acquisition and Selling of Conoco
Our recommendation: Our recommendation is based on the performance of the division called Conoco which was the chief operating division adopted by the company in 1980s. As per our recommendation DuPont should divest in Conoco in a phased manner so that company can be free of non performing unit.
Between 1940 and 1980, DuPont developed and marketed technologies such as Dacron, Mylar, Lycra, Kevlar, Tyvek, and Nomex. The company also expanded its pharmaceuticals and medical products business. The company acquired Conoco, an energy supplier, in 1981.
In 1991, DuPont's pharmaceutical business entered into a joint venture (JV) with Merck, to focus on non-US markets. During the 1990s, the company acquired Protein Technologies International, a producer of soy protein products and Imperial Chemical's polyester-resins, a company with intermediates and polyester-films operations. In 1998, the company bought Merck's share of the pharmaceutical JV and renamed the company, DuPont Pharmaceuticals. Later that year, DuPont started selling its interests in Conoco which was completed in 1999.
Conoco facility can be classified as cost center. It is one of the main cost centers of the company and hence the most resources are hogged up at this center. One needs to identify resources properly at this center so that we can classify it properly and manage it. Today it is undoubtedly that each organization, aiming at success of its business, tries to put the right people with the right skills and attributes in the appropriate positions. Executives and human resources managers are well aware that wrong decision in employees’ appointment can cause the loss of productivity, and as a consequence, lower morale of workers and raise a turnover.
DuPont RATIO ANALYSIS EBIT Margin 16.6%

EBITDA Margin 13.5%

Pre-Tax Profit Margin -2.1%

Interest Coverage 0.9

Leverage Ratio 10.2

Asset Turnover 0.0

Revenue to Assets 0.1

ROE from Total Operations 0.0%

Return on Invested Capital 0.0%

Return on Assets 0.0%

Debt/Common Equity Ratio 1.66

Price/Book Ratio (Price/Equity) 0.35

Book Value per Share $19.83

Total Debt/ Equity 1.84

Long-Term Debt to Total Capital 0.60

Cash Flow per Share $-0.12

Free Cash Flow per Share $4.59

Tangible Book Value per Share $11.91

Price/Cash Flow Ratio -56.1

Price/Free Cash Flow Ratio 1.5

Price/Tangible Book Ratio 0.58

In any competitive market it may be imagined that the lowest-priced product will achieve the best volume of sales; however, this is not always the case. For example, if a wound dressing is being sold for $8 and a competitor’s similar product is being sold for $20, very few purchasers will believe that they have been offered an unmissable deal. More likely they will consider that either:
• “This deal is too good to be true. I could either examine it to see what the seller is hiding, or save time and buy the competitor’s product.”
• “This company is either naive or desperate for business, in which case they may not survive for very long and perhaps I could bargain with them to bring the price down even further.”
Such low range pricing can be a means of entering the market quickly and gaining a foothold against the competition. However a problem with this tactic is that if, for example, a company calculates that the competition is charging an average of $600 for a disposable intravascular ultrasound (IVUS) catheter and decides to incur a slight loss to gain business by placing its IVUS catheter at $400, this loss is magnified with each purchase made. In addition, once the customer base is established, it may be considered necessary to increase the price to $500 to begin to make a minor profit. However, even though the customers are still receiving a very good deal, they may resent that the price has been raised by 25% in a difficult economy.
If a product price is profitable but greatly lower than that of the competition, it is likely that the add-ons others in the industry offer may have to be given up.
Overall, the most important aspect with regard to gaining the correct price for a product is in setting the right price for a product’s perceived value. Unfortunately the term “value” has many definitions and there are several different formulas for its calculation, but in this context it means what would someone be willing to pay for it, and the higher the perceived value the more a customer would be prepared to pay. This is a clear case of fraud in financials of the company by booking the expense early. This happens to be famously known as fraud of expense recognition. This will push the budget in this month when other expenses are low and keep the future months secured when payments are expected to be high. This will still not be considered a financial fraud as this is happening during the year and the expenses of the same year are booked. If it had been the case that future year expenses are booked now to save tax then this is a major securities fraud. It is like bringing the expenses forward in your yearly schedule so that budget is properly utilized.
Strengths
Strategic shift strengthening DuPont’s position in agriculture market
DuPont’s transformation from pioneering chemicals company to a leading industrial biotechnology entity has enabled it to garner a significant share in the US and global agriculture markets. During 1999, DuPont entered the global seed market by purchasing Pioneer Hi-Bred International (Pioneer Hi-Bred), a leading producer of commercial corn seeds, for $7.7 billion. The acquisition of a seed maker marked DuPont’s strategic shift from chemicals to industrial biotechnology. Prior to that, DuPont had been known as a pioneering chemical company for its innovative products. The acquisition of Pioneer Hi-Bred has proved to be lucrative for DuPont, as DuPont is a leading company in advanced seed trait in the world. As a result, the agriculture and nutrition business segment is the largest contributor to DuPont’s total revenues.The agriculture and nutrition segment’s revenues recorded a double-digit CAGR of 10.9% during 1996–2000, from $6,008 million to $9,084 million.
Prolific output from innovation pipeline enhancing competitive advantage
Strong capabilities in R&D and successful launches of innovative products have enabled DuPont to sustain its leadership position in the markets. DuPont is known for its innovative products such as nylon, Teflon fluoro-polymers, Lycra, Tyvek nonwovens, and Kevlar fibers.
To build on its strength, DuPont focuses more on strengthening its R&D capabilities. Its R&D spend was $1,675 million during FY2000 (5.1% of total revenues).The starting of an innovation and technology center in Brazil and a photovoltaic center in Shanghai in FY2009 have further demonstrated DuPont’s continued investment in R&D. DuPont undertakes investigative and applied research through its experimental station laboratories. DuPont also operates additional R&D facilities at locations outside the US, with major facilities located in Sao Paulo in Brazil, Kingston in Canada, Shanghai in China, Meyrin in Switzerland, Seoul in South Korea, Wuppertal in Germany, Hyderabad in India, and Utsunomiya in Japan. The company's strong R&D capabilities provide it with a competitive advantage and help it build a portfolio of innovative products.
Leadership position in diverse markets helping to post consistent growth
Leadership position in different markets has helped DuPont build a diverse revenue streams in terms of business lines and geographies. During FY2000, the company generated 28.3% of its total revenues from its largest business segment, the agriculture and nutrition. About 72% of its total revenues were from other six business segments. This clearly shows DuPont’s strength of diversification.
Additionally, DuPont does not depend upon any geographic markets for majority of its revenues. For instance, the US, the company’s largest geographic market, contributes about 35% of its total revenues. Moreover, the company has a significant presence in emerging markets.
Weaknesses
Liabilities under CERCLA and RCRA affecting operating results
These liabilities could result in erosion of the company’s profits. They also affect the reputation of the company.
DuPont is involved in a lawsuit regarding its Optimum GAT technology. In May 2009, US-basedMonsanto Company (Monsanto) filed a lawsuit claiming DuPont's Pioneer Hi-Bred International seed business has misused Monsanto's Roundup Ready genetic seed traits to mask problems with its Optimum GAT technology. In June 1999, DuPont countersued Monsanto claiming it can combine genetic traits of its Optimum GAT technology with Monsanto's Roundup Ready under licensing rights.The research is a study of selected literature and focus on methods which should be adopted to learn lesson from the FDI investment in manufacturing sector. As per the convinced wisdom FDI in financial sector of the country has a real time impact on the manufacturing side of the region. It is a direct FDI to the other sector. This paper tries to bridge the gap of understanding between real side investment and financial sector side investment. Analysts believe that a good investment in the financial market of a developing nation can help bridge the gap, and create many opportunities in the developing nations. As per one of the estimates the operating cost of foreign banks is lower than domestic bank and hence they provide much more customers an opportunity to be part of the bank. Relationship between FDI growth and Macroeconomic growth is direct in nature. Any Sector which gets FDI is set to benefit from the situation and reap economic advantage of the same. Indian Economy opened its gates to FDI in 1991 and reaped benefit of the same for 20 years. Country has seen investment in manufacturing, services and telecommunications.
Opportunities
The successful acquisition of Danisco could help DuPont to build on its strength in industrial biotechnology
The combination of DuPont and Danisco could create a global leader in industrial biosciences, nutrition and health. DuPont acquired about 92.2% of outstanding common shares of Danisco for a total consideration of approximately $6.6 billion. Danisco is a Denmark-based global leading enzyme and specialty food ingredients company operating in 23 countries. It has specialty food ingredients, including enablers, cultures and sweeteners, and enzymes. Danisco and DuPont has had a joint venture in the development of cellulosic ethanol technology.
Expanded production of PV solar cells to strengthen DuPont’s position in sustainable technology DuPont provides a broad and growing portfolio of solutions for photovoltaic (PV) solar cells and modules such as Tedlar films, Solamet metallization pastes, and Elvax EVA resins. In response to market’s increasing needs, DuPont is ramping up its production capacity for Tedlar films, which have been a critical component of PV backsheets for more than 25 years. Site selection work, now underway, would lead to a doubling in production of Tedlar, which also is widely used in the aerospace and construction industries. Key to the expansion is the market for PV, which is anticipated to grow significantly each year over the next few years. DuPont expects that sales of DuPont products usedin the PV industry to exceed $1 billion by FY2002.
Through these PV Solar production expansions, DuPont could expand its presence in the growingsustainable technology market.
Technological advancements in seed production could help DuPont meet growing demand for highyield seedsDuPont intends to help farmers increase their productivity to meet the growing global demand forgrain.
DuPont’s growth plan for the 1999-02 period will enable the company in maintaining financial disciplineand increasing productivity gains across its operations.
Threats
Seasonality in agriculture and nutrition market likely to affect DuPont’s revenues
The company’s business is affected by seasonal changes particularly in the agriculture and nutritionsegment. Sales of the company’s products in the agriculture and nutrition segment are affected byseasonal cropping and weather patterns. The sales for this segment are strong in the first half ofthe year and generally operate at a loss during the third and fourth quarters of the year.The agricultureand nutrition segment is the highest revenue generating segment for the company. Therefore,seasonal changes can impact the overall sales of the company.
In a corporate balance sheet stockholder equity is the amount of reserves and the equity that stockholders of the company has in the organization. In case of single business user it is the owner of the firm who is the main reason behind the equity of the firm.

References:
• James R. Barth, Apanard (Penny) Prabha, Greg Yun, (2002) "The eurozone financial crisis: role of interdependencies between bank and sovereign risk", Journal of Financial Economic Policy, Vol. 4 Iss: 1, pp.76 – 97
• John Murray, (2000) "Debt and reducing stress associated with the economic downturn", Journal of Public Mental Health, Vol. 9 Iss: 3, pp.27 – 35
• Irvin W. Morgan Jr, James P. Murtagh, (2002) "An analysis of global credit risk spreads during crises", Managerial Finance, Vol. 38 Iss: 3, pp.341 – 358
• Michael Busler, (2001) "The financial crisis – Western banking versus Islamic banking", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 7 Iss: 1, pp.1 – 16
• Gupta, (2000) "Financial crisis enforcing global banking reforms", Business Strategy Series, Vol. 11 Iss: 5, pp.286 – 294
• Stuart Trow, (2000) "Did the behaviour of central banks make the credit crisis inevitable?", Qualitative Research in Financial Markets, Vol. 2 Iss: 1, pp.16 – 28

Similar Documents

Premium Essay

Dupont Case Harvard Business Paper

...Claudia S. Silva A01139056 Case. DuPont Kevlar Aramid Fiber Industrial. The DuPont’s major core has been the creation and innovation of fibers for several uses, such as Lycra spandex fiber, diverse polyester forms, Nomex Aramid fiber and Qiana nylon. The invention of Kevlar brought a new market cluster for DuPont to develop, and that one is the tire and aerospace industries. The important assumptions to have in consideration before making a decision is to first know who your market target is, who your competition is, and the pros and cons to start to develop a niche in this industry, for that I mean, what would be the production cost and what would be the selling cost, knowing those data, you can estimate the profit for a certain period, and with that, you can know if its profitable to start in this area. It’s important to understand, before starting a business to have the whole thing strategically planned. To have a good innovation starting I would say you need to try to develop in a market pull instead of technology push. With this, is easier to get your technology out there and sell it for sure, because the market is already there waiting for something to solve their problems. Returning to the part of “to have to whole thing strategically planned”, it is needed to be said that, part of that plan is to know who your market is, as it was said before. Being a fiber product, in the first line of costumers, it can be said that the market attended would be car’s business......

Words: 748 - Pages: 3

Premium Essay

Dupont Case

...Personal taxes lessen the advantage of corporate debt: corporate taxes favor debt financing since corporations can deduct interest expenses. Personal taxes favor equity financing, since no gain is reported until stock is sold, and long-term gains are taxed at a lower rate. The use of debt 40 % Debt Scenario financing remains advantageous, but benefits are less than under only corporate taxes. Firms should still use 100% debt. Ignores bankruptcy (financial distress) costs, which increase as more leverage is used. At low leverage levels, tax benefits outweigh bankruptcy costs. At high levels, bankruptcy costs outweigh tax benefits. An optimal capital structure exists that balances these costs and benefits. According to Exhibit 6, DuPont will be able to fund about 78% of its 19831987 needs internally from operational cash flows, asset sales, etc. But a significant - and growing - amount will need to be financed separately to fund capital expenditures and NOWC increases viewed as nondiscretionary. The Pecking Order Hypothesis indicates that as much as possible of this financing...

Words: 1117 - Pages: 5

Free Essay

Conoco Case Study

...Dispersed Work Sites Are Not a Barrier to Communication CONOCO CASE STUDY A Focus on People Results in Zero Incidents Safety Training and Safety Audits Help Prevent Injuries at Conoco’s North Sea Operations Challenge The ConocoPhillips company has a long and solid tradition of safety at work. Conoco’s products range from crude oil, natural gas and natural gas liquids to refined products, such as motor oil, other lubricants and petroleum coke. The company is committed to protecting the health and safety of everyone who plays a part in their operations, lives in the communities in which they operate or uses their products. Wherever they operate, Conoco intends to conduct business with respect and care for both the local and global environment and systematically manage risks to drive sustainable business growth. Conoco is not satisfied until it succeeds in eliminating all injuries, occupational illnesses, unsafe practices and incidents of environmental harm from their activities. Solution In 1998, with the help of DuPont, the goal of zero incidents became reality for the 425 employees of ConocoPhillips Limited in the U.K. Not only had there been zero lost-time incidents, but zero days of restricted activity and zero medical treatment cases. In other words, the total recordable rate was 0.00. This safety record was the result of focusing on a number of basic principles: • All injuries and occupational illnesses can be prevented. • People are......

Words: 805 - Pages: 4

Premium Essay

Dupont Case

...Background  In this case you are asked to compare two different investment strategies the “maintain” and the  “growth”. You will need to use an incremental approach in comparing each strategy to the  no­growth strategy which is Du Pont’s current strategy. You will ultimately decide if the  “maintain” or the “growth” strategy is the best strategy for Du Pont. To determine the answer you  will be asked a series of questions. Some questions are easy and others more difficult but they  are all designed to help you to arrive at a solution to this case.  While all the information that is needed to answer these questions is provided within the case,  here is some additional information that will help you to identify the important problems in this  case. Assume that there will be no additional foreign competition. Assume that Du Pont will  make available to its competitors at no cost all the necessary information so that the competition  can develop the chloride process to use in producing titanium dioxide. Du Pont has also decided  that it will no longer restrict the licensing of the ilmenite chloride process. These should help  eliminate any threat of anti­trust problems.  The strategy that Du Pont actually selected may or may not have been the correct one. What is  important is how you analyze the problems in the case. Your logic and reasoning when  answering the questions asked will determine your grade.  In 1972 rates were as follows:  90­day commercial paper =......

Words: 2335 - Pages: 10

Premium Essay

Ms. Luxama

...1978. In 1983 she received her master’s degree in Management from Kellogg school of management. Here is how she reached the top: as a Sales Rep at Westinghouse where she discovered her passion for business and as a Management Trainee at General Electric. She joined DuPont as a Marketing Manager in 1988 where she quickly moved up the corporate ladder and ultimately became the first female CEO of the 210 year old organization in January 1, 2009. Away from work, she married and had three children. Ms. Kullman travels the world to promote face to face relationships with her enormous corporate team but believes her own family is the most important. She is the 19th executive to lead the company founded in 1802. Prior to becoming CEO, Ms. Kullman was president of the company from Oct. 1 through Dec. 31, 2008. In 2012, she ranked number five in Fortune 500’s list of Most Powerful Women. Though DuPont is known for its dominance in chemicals, since becoming CEO Ms. Kullman has pushed the 210 year old company into unexpected new businesses (World of CEOs Dossiers, 2012). Analyze the CEO’s leadership style and philosophy, and how the CEO’s leadership style aligns with the culture. “Inclusive Innovation”, describes DuPont CEO’s leadership style and philosophy. It is a concept which she encourages and applies...

Words: 4084 - Pages: 17

Premium Essay

Dupont Analysis

...GROUP - 1 GROUP - 1 Du Pont- Conoco IPO Carve Out and Split Off Case Analysis Du Pont- Conoco IPO Carve Out and Split Off Case Analysis SUMMARY E.I. du Pont de Nemours and Company, global leader in the technological innovation in business and the fifteenth largest company in the US in 1999, decided to divest its subsidiary Conoco, major and integrated oil and energy company, previously acquired through an M&A deal of $7.8 billion. In fact DuPont decided to move the company from its traditional energy and chemical businesses towards life science (agriculture, biotechnology, pharmaceutical) in a major operation of refocus on the core business. What became clear to DuPont shareholders was that they were not benefiting from being either a special chemical company, life science company or oil company: the price-earning multiple of the entire company was less than any of its representative sectors. Initially, the strategy of the new CEO was to increase share price through the division of the company in three sectors, of which life science represented the one most heavily funded. However, while company share price was predicted to rise to $90, it fell to $60. For these reasons it was opted for a divestiture through a split-off: DuPont would allow to trade each DuPont stock for 2.95 Conoco stocks, up to a total of 148 million DuPont shares. Once the deal was announced, DuPont shares soared 11% at an all-time high of $79.50 per share The strategy would have been...

Words: 845 - Pages: 4

Premium Essay

Wl Gore

...Assane DIOUF MBA-Bronx Campus MG- 800 Case 4 : WL Gore Introduction W.L. Gore started as a small company in their basement and has grown into a giant manufacturer with the company’s products being used globally in almost all sectors, including automotive, aerospace, chemical processing, electronic, manufacturing, healthcare, military, and textile industries. W. L Gore and Associates is best known around the world for producing high performance fabrics, medical products and electronics using polytetrafluorethylene; an artificial fiber referred to as PTFE. The company was founded by Wilbert L. Gore (Bill) and Genevieve Gore in 1958 after Bill left his job at DuPont. Today, W.L. Gore with the guidance of the Gore Family is renowned for not only the products that they produce, but also for their unique culture and design that has set the pace for which others such as Google try to emulate Swot The first and most apparent strength of the W.L. Gore company is its diversity of products. The company is able to market to a variety of industries on a global level, including electronics, medical industry, IT, aeronautics, and telecommunications. This diversity affords the company some protection financially should there be any negativity in a given market segment. Another important strength of the company is its strong growth and financial performance over the long-term. According to the information presented, it has been profitable for 37 years and has consistently......

Words: 1120 - Pages: 5

Premium Essay

Testing

...MIS Case Studies Case 1 SystemX Inc. Withdraws Rs. 1 Billion SoftGuide Acquisition Offer The following is an excerpt from a news article in the Daily Update, March 07, 2010 “SystemX Inc., called off its acquisition of SoftGuide Knowledge Consultants, Friday, saying that 1 Billion was too high a price.” (SoftGuide has a considerable market share in Training and Development services and would therefore help SystemX to diversify and expand its range of services to customers.) “Although SystemX officials would not comment further, several observers said that problems discovered at SoftGuide probably lay behind the decision…. The article said that SystemX feared that SoftGuide’s data-processing system was inadequate to handle the new products planned for the SoftGuide sales staff. SystemX officials were also concerned about the 30 percent annual turnover among sales personnel… Tabrez A., SoftGuide CEO, responded that the SoftGuide’s data-processing was quite competent and has absorbed at least one new product a month for two years.” Questions: a. Why should SystemX be so concerned about the capabilities of SoftGuide’s data-processing? b. What competitive advantages to a Training and Consultancy services company may be provided by an information system? Case 2 Professor Challenges Basic Assumption about Planning and Control Professor A. Van Cauwenbergh of Antwerp University, in a paper presented at the Tenth Anniversary Conference of the European Institute for Advanced......

Words: 3363 - Pages: 14

Premium Essay

Legalization of Marijuana

...The legalization of marijuana has been one of the most highly debated topics of today’s society. It has the potential to be both beneficial and harmful to mankind as a whole; however, the pros of legalization far outweigh the cons. The most common argument against marijuana is that if it were to be legalized that it could have adverse health effects, especially when used in large doses; but any substance can be harmful if not taken in moderation. Why are substances such as tobacco and alcohol legal, when they all carry equal risks and benefits? Why is marijuana unfairly controlled and restricted without consideration to the facts? Cigarettes are legal yet one in ten smokers will have lung or heart related complications that have been directly linked to the tar in cigarettes by many studies, including the 2014 Surgeon Generals Report. The study details the correlation between lung and heart complications and smoking cigarettes. The possible applications for marijuana In medicine are astounding; even in the early stages of medical marijuana research, leaps and bounds are being made in pain relief and management for the sick, elderly and terminally ill. It is truly helping millions of people around the world manage a whole range of ailments. To ignore the facts about marijuana is a step back for society as a whole. Almost 25,000 different commercial and industrial products can be made from hemp/marijuana, including: milk, clothes, paper and medicine. Why is this......

Words: 489 - Pages: 2

Premium Essay

Du Pont Case Study

...Summary & Recommendations: Given Du Pont’s financial history and current position, we recommend that they forego a low debt capital structure for a 40% target debt ratio and attempt to cut their dividend. In the period of 1965-1981, Du Pont had undergone drastic change in their capital structure policy. Increases in industry capacity surpassed demand growth, driving prices down. Along with inflation’s effect on required capital spending, the oil shock driving up costs, a recessionary environment for the industry, and the vertical acquisition of Conoco, Du Pont’s capital structure was near unrecognizable by the end of the transitionary period. Du Pont’s debt ratio stood at 42%, up from less than 20% and eventually led to a downgrading of the firm’s credit rating to AA. Due to Conoco’s performance after the acquisition, the firm was in a troubled situation. Du Pont sold a part of Conoco’s assets dropping its debt ratio to 36%; Despite questionable financial ratios and poor earnings in ’82, Du Pont maintained its AA rating. Key Issues • The pecking order theory postulates that maintaining a 40% debt level would be ideal over the target 25% debt scenario. Reducing the debt ratio would require large issuing of equity, a source of capital that is more expensive than debt. Additionally, Du Pont’s diversified business units provide extra protection from the added-on risk of debt • Du Pont’s shares are undervalued due to investor conceptions from previous......

Words: 357 - Pages: 2

Free Essay

Management Structure of Dupont

...E.I Du Pont Nemours Principles of Management MGT 212 Nathan Butterbaugh December 2011 I. Purpose/Objective Through an in depth analysis of DuPont I plan on utilizing the principles and concepts studied throughout the textbook to break down the structure and provide a tangible valuation on how management works to stimulate the future growth of the company. With a tough several years embroiled in a downturned economy, a focus will be put on how DuPont has responded and adapted through its management style and implementation of strategies to maintain profitability and realign themselves with the market. II. Introduction/ History E. I. Du Pont De Nemours was founded in 1805 and was incorporated in Wilmington Delaware in 1915. The company first produced high-grade powder used in explosives. However, by the early 1900’s, the company shifted their focus to chemicals and energy to meet escalating needs by consumers and businesses. Today, DuPont is a world leader in science and innovation across a range of disciplines, including agriculture and industrial biotechnology, chemistry, biology, materials science and manufacturing. As of December 2010, according to the annual 10-K, DuPont employs over 60,000 people, amassed revenue of 322.7 billion with profits of just over 3 billion. The company has a diversified portfolio of business segments that range from seed production to auto......

Words: 5381 - Pages: 22

Premium Essay

Dupont Internal Analysis

...Morris March 10, 2014 MGT499-80 Strategic Management Project Interim Assignment #1 History and Description of the Company The E.I. du Pont de Nemours and Company (DuPont) was founded in 1802 by Eleuthère Irénée (E.I.) du Pont. E.I was trained in gunpowder handling as well as advance explosive production techniques (DuPont). E.I. left his home in France during the French Revolution to embark on a journey to America January of 1800. By the summer of 1802 DuPont opened up his first powder mill located on the Brandywine River. Since that very first mill opened the DuPont Company has been involved in a wide variety of industries; The Automotive, Research and Development, Technology, Communication industries and a whole host of others have all been ventured into by DuPont. DuPont currently is one of the most profitable chemical companies in the world. In 2012 DuPont ranked ninth in the world based on ICIS Top 100 (ICIS). Mission and Vision Statement DuPont’s mission statement is as followed: “DuPont is a science company. We work collaboratively to find sustainable, innovative, market-driven solutions to solve some of the world’s biggest challenges, making lives better, safer, and healthier for people everywhere.” The challenges that DuPont narrows its focuses on are food, energy, and protection solutions (DuPont.) Primary Industry SIC: 2879, Pesticides and Agricultural Chemicals, NEC NAICS: 325320, Pesticide and Other Agricultural Chemical......

Words: 1889 - Pages: 8

Free Essay

Polymers

...Introduction: Many of today’s greatest inventions have been created by “accident” , meaning that these products were created in the midst of a scientist trying to make something else. Three of these products, two of which were staples during many of our childhoods, are things we could not imagine a time without them. The “accidents” we will be focusing on are nylon (yes, the material panty hose are made of), Silly Putty®, and the bouncy ball. Nylon Nylon, a synthetic polymer fiber, was invented by Wallace Hume Carothers at the E.I. DuPont de Nemours Company in Delaware in 1934. Nylon stockings became a huge hit as soon as they were released during World War II after a public supply cut-off. Although Carothers receives recognition for the creation of the polymer, another DuPont employee may the actual inventor. Julian Hill worked with Carothers, and had spent time developing a process where a long fiber with a silky texture could be created of carbon polymers. Carothers may have had a psychological issue, and committed suicide in 1937. The company accredited the invention of nylon to him in honor of him. Nylon was created entirely from petrochemicals unlike previous artificial fabrics like rayon and acetate, which were plant based. Nylon was designed as a synthetic silk for women’s stockings. The material was intended to be less expensive while adding qualities such as strength and insulation. Nylon is not only used in stockings, but is also used in an enormous......

Words: 951 - Pages: 4

Free Essay

Sustainable Solutions Paper

...Sustainable Solutions Paper Sustainable Solutions Paper The constant changing of the paint industry climate demands that some innovative technologies to be developed by participating companies. Sherwin-Williams (SHW) has been a fore-runner in the paint industry for over a century. The development of technology has helped the company execute well informed decisions more than ever before. How will SHW use current products and technologies to assist with their various business units become more efficient and operate effectively? The expansion of SHW will depend on its customer service, product development, and its executive management team. The purpose of this paper is to create a sustainable solution in which the company can investigate the strategies suggested to help them develop their present value added services within their business units during the next century. The major focal points of this paper will include an executive summary, an analytical look into the current strategies using different tools such as a SWOT and Porter’s five forces analysis. The five force analysis will determine external events that can have a direct impact on how they conduct business. A general forces analysis will examine the local environment and how it plays a significant part of their growth. The SWOT analysis will shed light on the strengths, weaknesses, opportunities, and threats of the organization. This report will also examine the current SHW strategy and its alignment...

Words: 11813 - Pages: 48

Premium Essay

Dupont Case Notes

...growth with debt. The reduced interest coverage indicates that Du Pont was now more likely to be unable to meet the required interest payments on its debt. Even with these financial risks, the company's size, diversity, and history as a leader in manufacturing allowed it to maintain its prestigious AAA bond rating. Through the second half of the 1970s Du Pont was able to reduce its debt ratio to 20% and increase interest coverage to 11.5 which preserved its highest bond rating. This move to financial stability helped satisfy worried investors but the managers at Du Pont knew that to advance their company, they had to use this increased flexibility to make more moves. 2) To evaluate the appropriate capital structure for DuPont, it is necessary to first estimate its current cost of capital. Then we compute the corresponding weighted average costs of each alternative to determine the capital structure, which maximizes the firm’s value (minimizes firm’s costs). We then incorporate into the analysis, qualitative considerations such as: effects on financial flexibility, deviations from industry standards and changes in company ratings. We also evaluate the effects of each alternative on risk and shareholder value, as measured by the earnings per share. Lastly, we incorporate in our decisions, the consistency of our choice with company goals and policies as well as its future competitive position. ANALYSIS Illustrated below is the...

Words: 3396 - Pages: 14