DuPont Management Analysis

E. I. DuPont de Nemours & Company

HISTORY

Founded in 1802 by Eleuthere Irenee du Pont, E.I. du Pont de Nemours and Company (DuPont) is an explosives Americanbased company headquartered in Wilmington, Delaware. Throughout its history of development, growth, merger and acquisition, the company offers variegated products and services in chemicals, agricultural, nutrition, communications, electronics, safety and protection, home and construction, transportation and apparel. DuPont has expanded operations in approximately 90 countries with 60,000 employees worldwide. Total revenues reached $31.5 billion in 2011. The company is known for its strong research and development with more than 75 labs in 12 countries worldwide.

E. I. DuPont de Nemours & Company

VISION

Our vision is to be the worlds most dynamic science company, creating sustainable solutions essential to a better, safer and healthier life for people everywhere.
MISSION, GOALS & OBJECTIVES

DuPont has a mission of sustainable growth, which we define as the creation of shareholder and societal value while we reduce our environmental footprint along the value chains in which we operate.

E. I. DuPont de Nemours & Company

DIVERSITY

In DuPont we will have an organization in which people of all backgrounds can contribute and achieve their full potential in pursuit of personal and organizational excellence. As a global corporation, DuPont has promoted diversity and had racially and ethnically diverse body of employees across various functions and business units. Ellen J. Kullman has been the CEO of DuPont since January 1st, 2009 and the first woman to lead the company in DuPonts 209 year history.

E. I. DuPont de Nemours & Company

SUSTAINABILITY

The need for truly sustainable options for 21st century life remains one of the most critical challenges facing the global community. As a science company, DuPont has the experience and expertise to put our science to work in ways that can design in at the early stages of product development attributes that can deliver solutions that help protect or enhance human health, safety and the environment. We believe this is a direct route to a successful, profitable business that adds value to our customers, their customers, consumers, and the planet. DuPont employees are asked to change printing practices, which will save the company $700,000 annually. DuPont also has improved logistics and distribution in a way that helps reduce NOx emissions by 4,000 kilogram and CO2 by 3,500 tons in 2007.

E. I. DuPont de Nemours & Company

Headquarters

E. I. DuPont de Nemours & Company headquarters is a fourteenstory high-rise building located in Wilmington, Delaware.

Pakistan Head Office

DuPont Pakistan Operations (Pvt) Ltd. 2nd Floor, Bahria Complex 1, M.T. Khan Road, Karachi.

E. I. DuPont de Nemours & Company

Management Operations

DuPont has global operations in about 90 countries, more than 75 R&D labs in 12 countries, and a total of 60,000 employees worldwide. In the increasingly globalized age, DuPont focuses on a larger scale of global operations and markets. The company determines excellence in operations is not optional but crucial to success in the intensely competitive global marketplace. The DuPont Operational Excellence (OE) model has been implemented with the following aspects: Asset productivity Capital effectiveness Operational risk management This model is designed to lower costs, to minimize potential incurring injuries and damages, to increase efficiency, to maximize sustainable returns on operating assets, and enhance competitive position in the market.

E. I. DuPont de Nemours & Company

Management Operational Model

The following chart illustrates the stages of the model.

E. I. DuPont de Nemours & Company

Management System

E. I. DuPont de Nemours & Company

Management Process

E. I. DuPont de Nemours & Company

Management - CIC

E. I. DuPont de Nemours & Company

Management - Functions

E. I. DuPont de Nemours & Company

Management - Functions

Planning:
This step involves mapping out exactly how to achieve a particular goal as organization's goal is to improve company sales. The manager first needs to decide which steps are necessary to accomplish that goal. These steps may include increasing advertising, inventory, and sales staff. These necessary steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales. DuPont management operates in matrix system to give maximum importance to planning phase in each SBU and sector of business.

E. I. DuPont de Nemours & Company

Management - Functions

Organizing:
After a plan is in place, a manager needs to organize the team and materials according to the plan. Assigning work and granting authority are two important elements of organizing. DuPont works in SBU and Matrix organization system to ensure focus on micro and macro organizing in better and effective way. System for authority granting is also very much organized from top to bottom.

E. I. DuPont de Nemours & Company

Management - Functions

Leading:
A manager needs to do more than just plan, organize, and staff his/her team to achieve a goal. He/She must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem solve with employees. Every SBU (Strategic Business Unit) has own leader which acts as functional leader for team members while administrator leader will be the geographical head. It provides leadership from two directions not coinciding with each other to help team with better and effective leadership.

E. I. DuPont de Nemours & Company

Management - Functions

Controlling:
After the other elements are in place, a manager's job is not finished. He/She needs to continuously check results against goals and take any corrective actions necessary to make sure that his/her area's plans remain on track. DuPont matrix organization structure provides opportunity to give enhanced focus on Controlling plans to keep close track. It provides each SBU to perform in independent and organized way with company for maximum results.

E. I. DuPont de Nemours & Company

Management

E. I. DuPont de Nemours & Company

Management

E. I. DuPont de Nemours & Company

Sales by Markets
DuPont 2011 Sales by Markets - Total $32.7 billion
Canada 3% Other 4%

Latin America 11%

US 35%

Asia/Pacific 22%

Europe, Middle East, Africa 25%

E. I. DuPont de Nemours & Company

Sales by Segments
DuPont 2011 Sales by Segments - Total $32.7 billion
Electronics & Other Communications 3% 9%

Safety & Protection 10% Performance Coatings 12%

Agriculture & Nutritrion 28%

Performance Chemicals 19% Performance Materials 19%

E. I. DuPont de Nemours & Company

INDUSTRY KEY SUCCESS FACTORS

Access to low-cost material will help DuPont improve operation margins since the company has low operation margins. Innovation Capability is DuPont strength in the industry. The company has thousands of patents and innovation s that have been applied in its plants and used for consulting services. Supply Chain Excellence is the key to the company success because supply chain management creates cost savings and time-to-market reduction. Ability to fund growth investments is very crucial since DuPont is a science-based technology. Available fund is very important to new R&D projects or new plants in new regions or countries.

E. I. DuPont de Nemours & Company

VALUE CHAIN ANALYSIS

E. I. DuPont de Nemours & Company

VALUE CHAIN ANALYSIS

Value chain analysis is the strategic model of a set of interrelated value-creating activities common to a wide range of firm. The diagram demonstrates support and primary activity that a firm operates. In addition to the value chain analysis, DuPont has a more complicated model that is discussed in Operations & Marketing part. The complexity is inevitable because the nature of DuPont company. It has operated more than 200 years and in seven industries offering a wide range of products and services. It is the Operating Excellence Model (OEM) that helps DuPont focuses on and manages efficiently the primary aspects of operations.

E. I. DuPont de Nemours & Company

SW/OT Matrix Format

Opportunities Emerging market growth Strategic global M&A Growing demand for environment-friendly products Alternative energy market

Threats Global economic crisis International market risks Tightening environmental regulations Volatile energy and raw materials prices

E. I. DuPont de Nemours & Company

SW/OT Matrix Format Strengths Strong R&D Diverse range of products and services Leading position in the market International operations Strong financial figures M&A

R&D for environmental-friendly products and alternative energy M&A foreign firms Generate more revenues from Include new products and services

Diversify services and products portfolios Diversify geographic operations Purchase commodity options Backward Integration

E. I. DuPont de Nemours & Company

SW/OT Matrix Format Weaknesses Lawsuits Legal and environmental charges Declining market share Low operation margin and liquidity Action Plan Settle lawsuits Reduce minimum pollutant wastes M&A to increase market share Offshore manufacturing to reduce costs Action Plan Pay attention to environmental issues in global operations Pay attention to legal issues both international and local Improve operation margin and liquidity

E. I. DuPont de Nemours & Company

Strategies
CURRENT STRATEGY RECOMMEND STRATEGY Differentiation CORPORATE STRATEGY Growth Merger and acquisitions Join ventures Diversification Differentiation in products, services, and brand images BUSINESS STRATEGY Differentiation Focus Develop new brand names and intangible assets Introduce improved products to extend industry life cycle Enhance pricing strategy Vertical integration Related diversification Unrelated diversification Wholly-owned subsidiaries Continue current strategies of M&A and joint ventures

INTERNATIONAL STRATEGY Multi-domestic

ENTREPRENEURIAL STRATEGY Differentiation Competitive: Strategic and Tactical Logistics Innovative products, services, and logistics

Key External Factors

Weight

Rating

Weighted Score

OPPORTUNITIES

1. Emerging market growth 2. Strategic global M&A 3. Growing demand for environment-friendly products 4. Alternative energy market

0.15 0.12 0.14 0.09

3 4 4 3

0.45 0.48 0.56 0.27

THREATS

5. Global economic crisis 6. International market risks 7. Tightening environmental regulations

0.18 0.12 0.15

3 2 1

0.54 0.24 0.15

8. Volatile energy and raw materials prices

0.15

0.30

TOTAL

1.00

2.99

Key Internal Factors

STRENGTHS

Weight

Rating

Weighted Score

1.Strong Research & Development 2. Diverse range of products and services 3. Leading position in the market 4. International operations 5. Strong financial figures 6. M&A 7. R&D for environmental-friendly products and alternative energy 8. M&A foreign firms

0.15 0.12 0.09 0.09 0.10 0.07 0.05 0.05

3 4 4 3 3 3 3 3

0.45 0.48 0.36 0.27 0.30 0.21 0.15 0.15

WEAKNESSES

9. Lawsuits 10. Legal and environmental charges 11. Declining market share 12. Low operation margin and liquidity
TOTAL

0.08 0.09 0.05 0.06 1.00

3 2 3 1

0.24 0.18 0.15 0.06 3.00

E. I. DuPont de Nemours & Company

IMPLEMENTATION

DuPont formulates different strategies for various business segments and units within the organization. The company uses contemporary approach together with its own models that suit the businesses. The above diagram the relationships of formulating, implementing, and controlling strategies. Behavioral control is interactive between strategic control and implementing strategies. Information control is between formulating strategies and strategic control.
CONTEMPORARY APPROACH TO STRATEGIC CONTROL

Formulate Strategies
Information Control

Implement strategies
Behavioral control

Strategic Control

Thanks