Premium Essay

Methanex Case Study (Ivey Case)

In: Business and Management

Submitted By tasminak
Words 5321
Pages 22
Methanex: Developing Strategy in a Commodity Industry |

1. INTRODUCTION
Methanex is the world's largest methanol producer. Before the economic crisis that had occurred in 2008, the company was very successful. It has been successful because of its leadership, which cut operating costs to a minimum, along with its reliable delivery. It also has a multi-million-dollar facility in remote, natural gas rich regions in the world and has its own distribution and logistics system.

2. PROBLEMS AND ITS SOURCES
Methanex is facing lower profit margins and having concerns of remaining sustainable in the market due the rising price of natural gas and political instability where its factories are located. The global recession has made regions with Methanex factories, such as Egypt and Chile, extremely unstable. Unlike Methanex's competitors, the company is not well diversified. Methanex is highly reliant on the stability of consumption in the global market for methanol. Although the company's leadership is very strong that has contributed to its success, political and economic instability have resulted in inconsistent gas supplies, thus crippling Methanex's production of methanol. The main source of the problem has been the impact of the global recession. Predominantly, the global recession threatened production facilities in Egypt and Chile. There have been a series of revolutions in Egypt and the surrounding nations, which has resulted in social unrest and political instability. As stated before, political instability plays a significant factor in gas supplies. Egypt, and many of Middle Eastern nations are oil rich, but many face political instability and social unrest. Methanex has built a brand new 870 million dollar facility, however due to the political instability in the region, it will result in problems related to both the production and export of methanol. In…...

Similar Documents

Free Essay

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Premium Essay

Case Study

...S w 9B09M035 TALISMAN ENERGY INC.: THE DECISION TO ENTER IRAQ Natalie Slawinski wrote this case under the supervision of Professor Pratima Bansal solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2009, Ivey Management Services Version: (A) 2009-07-02 In June 2008, John Manzoni, president and chief executive officer (CEO) of Talisman Energy Inc. (Talisman), and his senior management team were called to a special board of directors’’ meeting. The board was debating Talisman’’s proposed entry into the oil-rich Kurdistan region of Iraq. This move was potentially very lucrative for the company but also posed many risks. Talisman had been tracking the issues related to the Kurdistan region for a number of years. The company had consulted multiple......

Words: 6581 - Pages: 27

Premium Essay

Case Study

...MGT 448 Week 4 Individual Assignment Google in China: Case Study MGT 448 Google in China: Case Study China and Google have not seen eye to eye lately. the element of defending human rights or complying with the Chinese Government has placed Google with a decision to choose between the two . This paper will examine the case study, Google in China, and answer the following questions: What advantages and disadvantages does Google have in the Chinese market in comparison with Baidu? What is the business model of each company? And what factors should Google have considered in reaching its decision on the new approach in China? Advantages and Disadvantages for Google in the Chinese Market Advantages that Google has over Baidu in the Chinese market include the public having access to un-censored search terms, Google’s AdWords and AdSense technology, and its partnership with China Mobile. Google also offers attractive applications such as “Picasa Web Album, Google Docs, Google Talk, Google Calendar and Google Checkout” (Yin & Yulin, 2010, p. 2). Some of Google’s services include “Google Earth, Google Hot List, Q&A and a free legal music download service” (Yin & Yulin, 2010, p. 3). In comparison with Baidu, Google does have some disadvantages which include its suspended “ability to search through foreign websites and its associative-word search function”, its criticism from Chinese Regulators and bad publicity from Chinese writers accusing the company of......

Words: 752 - Pages: 4

Premium Essay

Case Study

...1. ------------------------------------------------- Determine the main objective of the case study. You may be writing a case study to fulfill an academic requirement or to help solve problems in real-life situations. An academic assignment typically will come with a specific objective and instructions, whereas a professional assignment might require you to define the objective. ------------------------------------------------- Ad 2. ------------------------------------------------- 2 ------------------------------------------------- Select the best approach. * Choose an analytical approach to increase awareness. In the preliminary stages of solving management problems, an analytical case study might best meet the goal of alerting upper management to core facts and issues. An analytical case study primarily focuses on what has occurred and why. * Select a problem-solving approach to pinpoint and solve major issues. If the goal is to make solution recommendations, write a problem-solving case study that clearly outlines problems and solutions. 1. ------------------------------------------------- 3 ------------------------------------------------- Conduct research for your case study. Examine the facts, dynamics, communications and all relevant aspects of the particular situation. Research might involve interviewing people in an organization, reviewing written documents or looking up relevant statistics. Method 2 of 5: Set the Scope for Readers ...

Words: 487 - Pages: 2

Premium Essay

Case for Case Studies

...A Case for Case Studies Margo A. Ihde Liberty University Author Note Correspondence concerning this article should be addressed to Margo A. Ihde, Psychology 255-B05, Liberty University, Lynchburg, Va. 24515. E-mail: mihde@liberty.edu A Case for Case Studies Case Studies are utilized across many disciplines including but not limited to medical science, political science, social science and psychology. There is however some confusion as it relates to the use of case studies. The first such confusion that must be clarified is what the definition of a case study is and what constitutes a case study. The second clarification is to identify the reasons for using a case study. A third area is outlining the advantages and disadvantages of using a case study. Lastly, when a researcher concludes a case study would be the best option they then must determine where and in what ways would the data and information be sourced. Identifying the answers for these four areas is imperative to understanding and utilizing a case study. Case Study – Defined The definition for a case study within all many disciplines is very similar. A case study is usually described as an investigation into a real situation involving an individual, a group, an organization, or a society focusing on a single subject or object (Pegram, 2000). To begin, identifying a case studies purpose would contribute to determining what would and should be investigated. The study could focus on the......

Words: 855 - Pages: 4

Premium Essay

Ivey Cases Analysis Yuanan Baiyao

...production facilities will need to be built for each health care product, deter from product cannibalism that is currently taking place, and to avoid direct competition by pricing at a different price point. The toothpaste industry is dominated by multinational firms such as Colgate and Proctor & Gamble where the competitive nature of the industry is very intense and profit margins are low. However, in order for Baiyao Toothpaste to compete at such competitive levels, YB will need to position Baiyao Toothpaste as a premium product. The pricing strategy of a higher price point of Baiyao Toothpaste will target a niche market with a value proposition to cure every kind of disease related to blood or bleeding and pain. It is understandable that in the case of failure in Baiyao Toothpaste, it can cause damage of YB’s reputation, affecting the fate of the healthcare department and YB’s brand equity. However, with over hundreds of years in the success of Baiyao, the form of Baiyao Toothpaste will provide much convenience to the already healing effects from the medicinal agents. Implementation Plan As previously mentioned, the recommendation is two-fold, therefore two separate implementation plans have been included – one which details licensing with 3M and one which details YB’s product development into toothpaste. Major activities for implementation with 3M are as follows (for a list of detailed steps and primary functional areas involved, please see Appendix 6). A......

Words: 5559 - Pages: 23

Premium Essay

Case Study

...The Case Study Approach Linda P. Williams Liberty University Online Author Note Linda P. Williams, Department of Psychology, Liberty University Online Correspondence concerning this article should be addressed to Linda P. Williams, Department of Psychology, Liberty University Online, 1971 University Blvd, Lynchburg, VA 24515, E-mail: lwilliams91@liberty.edu The Case Study Approach Introduction At some point during the pursuit of a degree psychology, the time comes when a student must learn various research techniques. One of the many approaches is case study, which this paper will focus on. Areas of discussion include reasons for using a case study, advantages/disadvantages to the approach, and ways acquire information to perform a case study. The essence of a case study A case study is used to offer a mental accounting of a person, school, neighborhood, business, or group of individuals over the course of time, way of research. It is sometimes referred to as naturalistic observation, but does not always follow the same protocol. Mental accounting is done by means of observation of various behavior or mind sets operating in their natural environment. This is noteworthy, especially when participants have a distinct disorder worthy of being studied to further the cause of research and development. Depending on the purpose of the investigation, the case study may present the individual’s history, symptoms, characteristic behaviors, reactions to......

Words: 671 - Pages: 3

Free Essay

Case Study

...S w 910N29 BASEL III: AN EVALUATION OF NEW BANKING REGULATIONS1 David Blaylock wrote this case under the supervision of David Conklin solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2010, Richard Ivey School of Business Foundation Version: 2013-03-11 INTRODUCTION The world’s biggest banks have a combined 1,730 (US$2,287 billion) gap in liquid investments that they must fill within four years, according to the Basel Committee on Banking Supervision, the international banking watchdog. Under the Basel III rule book, finalized by the committee on Thursday, December 16, 2010, 91 of the world’s biggest banks — tested in an impact......

Words: 1769 - Pages: 8

Premium Essay

Case Study - Methanex

...Introduction Methanex market leader position could enable it to absorb minor fluctuation in demand and supply through its global supply chain in an effort to remove volatility and set more consistent long-term supply prices for its consumers seeing a 49% growth increase from 1997 to 2013. Global recession caused Methanex prices to decline in 2009; however, recovery was seen in 2010 showing moderate growth. Global demand for Methanol had total revenue of $1,967 million in 2010, representing a compound annual growth rate (CAGR) of 4.7% from 1997 to 2010 and an expectant CAGR of 7.3% between 2011 and 2015. Analyze the competitiveness of the methanol industry using Porter's 5-forces and the PESTEL Model. Porter's 5-forces Threat of Entry: The methanol industry is characterized by relatively low product differentiation. Entry barriers include capital requirements to establish manufacturing facilities and other financial obligations, which make a strong and durable barriers to entry. New companies require significant capital in order to set up production plants especially in remote areas where natural resources are in abundant. They will face stiff competition from large companies like Methanex. This means that small-scale market entry is doubtingly to be successful. Bargaining Power of Suppliers: Methanol is a unique product The market has a small existing players in the production of methanol; however, with diseconomies of scale. Due to this, Methanex can......

Words: 1042 - Pages: 5

Premium Essay

Case Study

...Instructors Manual Case Studies Table of Contents Introduction Shipper Manufacturing Company ………………………………............ C-2 FHE, Inc. ……………………………………………………………….. C-5 Early Supplier Integration in the Design of the Skid-Steer Loader……... C-9 Process Design Eastern Gear, Inc. ………………………………………………………. C-17 Southwest Airlines: Singin’ the (Jet) Blues …………………………….. C-21 The Field Service Division of DMI ……………………………………. C-29 Pharmacy Service Improvement at CVS (A) …………………………… C-36 U.S. Stroller …………………………………………………………….. C-37 Quality Customer-Driven Learning at Radisson Hotels Worldwide ……………. C-41 Quality at Gillette Argentina …………………………………………… C-46 Bayfield Mud Company ………………………………………………… C-47 Six Sigma at 3M, Inc. …………………………………………………... C-53 Capacity and Scheduling Crocs: Revolutionizing an Industry’s Supply Chain Model for Competitive Advantage …………………………………….. C-58 Unifine Richardson …………………………………………………….. C-59 eBags: Managing Growth ……………………………………………… C-60 Merriwell Bag Company ……………………………………………….. C-69 Lawn King, Inc. ………………………………………………………… C-74 World Industrial Abrasives ……………………………………………... C-84 Inventory Consolidated Electric …………………………………………………... C-88 Southern Toro Distributor, Inc. ………………………………………… C-93 ToysPlus, Inc. …………………………………………………………... C-99 SHIPPER MANUFACTURING COMPANY Teaching Notes Synopsis and Purpose Shipper Manufacturing Company is a manufacturer of electrical products, laminated......

Words: 33168 - Pages: 133

Premium Essay

Case Study

...their study of outpatients, McCarthy, McGee, & O'Boyle [2] found that 64% of patients rated waiting times as unsatisfactory. In addition, that study reported that a significant number of patients who decline to attend their appointment do so because of the expectation of long waiting times. Such “no-shows” are an obviously undesirable occurrence where they can be avoided. In the similar environment of appointments for physicians, survey results show patient waiting time as one of the top three differentiators for “best practice” offices versus average offices [3]. This suggests that for health care systems where patients have a choice of health care providers, shorter waiting times are apparently a competitive advantage. -1- How much waiting at an outpatient clinic is acceptable depends on many factors. Individual “patience”, the type of clinic, and the pleasantness of the waiting area all affect patients’ tolerance for waiting. As Cartwright & Windsor [4] note, patients will accept short waiting periods. However, there is a limit to the length that patients will accept graciously. The study by Huang [5] found that patients who arrived on time for appointments were satisfied with wait times of 37 minutes or less. In 1991 the UK’s National Health Service’s Patient’s Charter set a 30 minute target for appointment waiting times [6]. Thus, it seems that wait times in the neighborhood of a half hour are considered acceptable. In this research, we study the......

Words: 7497 - Pages: 30

Free Essay

Case Study

...H 9B12C047 FOOD FOR THOUGHT: THE 2008 CHINA MILK SCANDAL1 Vivien K.G. Lim, Rashimah Rajah and Smrithi Prasad wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2012, National University of Singapore and Richard Ivey School of Business Foundation Version: 2012-11-14 In 2007, Sanlu, a Chinese milk manufacturing company based in Shijiazhuang, was recognized as a formidable force by its competitors as it had topped the list of local dairy producers for more than a decade. It was also the second biggest dairy producer in the world. Sanlu was the number one bestselling milk brand in China, responsible for 18.3 per cent of total national dairy sales in 2007.2 A year later, however, a scandal unfolded that brought not only......

Words: 4602 - Pages: 19

Free Essay

Case Study

...Case Study Complete Case History The patient in this case study reports being ‘sick with flu’ for 8 days. She has been vomiting, and cannot keep any liquids or food down. She also reports that she has been using antacids to help calm the nausea. After fainting at home, she was taken to the local hospital, severely dehydrated. Upon looking at her arterial blood gas result, it would appear that this patient would be suffering from metabolic alkalosis. This patient’s pH is greater than 7.45 (normal: 7.35-7.45) and her bicarbonate (HCO3) is greater than 26 (normal 22-26). Blood gases indicate that case study patient is suffering from hypochloremic metabolic alkalosis. Focused Assessment The case study patient reports being “sick with flu” for eight days. She reports vomiting several times a day and taking more the recommended dose of antacids. She reports that she fainted today at home and came to the hospital. The case study patient reports that this all started approximately eight days ago. The case study patient also reported taking excess amounts of antacids. Ingesting large amounts of this medication can cause metabolic alkalosis. When antacids are taken in large doses, the ions are unable to bind, and therefor the bicarbonate is reabsorbed and causes alkalosis (Lehne, 2013). Renal and Respiratory systems response Hypochloremic Metabolic alkalosis occurs when there is an acid loss due to prolonged vomiting which causes a decrease in the extracellular...

Words: 289 - Pages: 2

Free Essay

Case Studies

...Case studies Name: Tutor: Course: Institution: Date: Flying to the Auto Bailout on a Private Jet Basic problems In this case study, there is wastage of resources. The CEOs of the nation's three largest automobiles uses private jets to attend the corporate public relations congress. This is wastage of resources since they are using private jets to travel when their companies are struggling to stay afloat. Ignorance is another basic problem evident in this case study. These CEOs are very ignorant. They attend the corporate public relation congress in Washington unprepared and thus appear to know nothing about their problems. The three companies, GM, Ford and Chrysler, lack the concepts of public relations. The main issues American economy is melting down. Most of the workers are losing their jobs since the companies cannot handle many workers anymore. The companies have got inadequate cash. Bankruptcy is another main issue experienced in this case study. The General Motors Company and the Chrysler can no longer pay their debts. Key decisions * According to the case study, the leaders have to come up with a new public relations strategy. * The CEOs should correct any mistakes they have made before such as using private jets to travel. * Introduce innovation in products * The auto industry of the US should promote its products. * Ensure transparency in business operations. SWOT analysis Strengths * Availability of resources for the......

Words: 657 - Pages: 3

Premium Essay

Methanex Case Study

...FOR METHANEX by Gabriel Wong Bachelor in Business Administration, Simon Fraser University, 2000 PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In the Faculty of Business Administration © Gabriel Wong, 2010 SIMON FRASER UNIVERSITY Summer 2010 All rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the author. APPROVAL Name: Gabriel Wong Degree: Master of Business Administration Title of Project: Assessing Methanol Production in China for Methanex Supervisory Committee: __________________________________________ Dr. Pek-Hooi Soh Senior Supervisor Assistant Professor __________________________________________ Dr. Aidan Vining Second Reader CNABS Professor of Business and Government Relations Date Approved: __________________________________________ i ABSTRACT Methanex is the world leader in methanol production and marketing. China is an important market; by 2014 it is forecasted to account for 50% of global demand. The purpose of this project is to determine whether Methanex should invest in methanol production in China. The project approach uses a multi-goal analysis focusing on three goals: (1) Consistent with Corporate Vision, (2) Sustainment of Existing Competitive Advantages, and (3) Profitability. Based on the analysis, the project concludes that Methanex......

Words: 20413 - Pages: 82