Eastman ChemicalEssay Preview: Eastman ChemicalReport this essayEastman Chemical Company located in Kingsport, Tennessee is in an industry that produces basic and immediate chemicals, specialty chemicals, agricultural chemicals, petrochemicals, plastics and fibers, and paints and coatings. Eastman also manufactures over 1200 chemicals, fibers and plastics; as well as being the largest supplier of polyester plastics. Currently Eastman employs over 15,000 people in 30 countries with manufacturing sites tactically located in 17 countries, with Asia Pacific Region Office being one of their key offices.
Eastman is known in the chemical industry as a world leader in the e-business. They are the first chemical company to provide their customers with e-business, which allowed them to do business in a much easier and efficient manner. Eastman e-business specializes in an online storefront and transactional Customer Centra; Web-enable auctions; alliances and investments in digital business, along with system-to-system ERP connections. The main focus of Eastmans e-business was:
1. Creating customer-centric solutions2. Portfolio of option, along with providing solutions for customers via electronic means3. Invest in technologies/capabilities that bring value to customers4. Be externally focused5. Form partnerships6. Build an e-brand, which attract customers, suppliers and technology partners7. Leverage its intellectual capital, industry knowledge, network of contacts, credibility, brand and customer baseBy implementing the e-business, Eastmans customers were able to view products, check status of orders, access certificates of analysis, material safety data sheets, etc. The only problem Eastman originally saw with the e-business model which they have worked so hard to implement was that only 22 of the companies, which they do business with, are connected. And its very important to get all the companies connected into their infrastructure, which will provide all their customers with the seven foundational principles.
Knowing the importance of getting the industry knowledgeable and connected to the e-business, Craig Knight, the Asia Pacific Digital Business and Customer Service Manager of Eastman Asia Division was tasked to sell the Eastmans philosophy. Knight made a two-week trip to Tokyo, Shanghai, and Malaysia to sell Eastmans integrated electronic supply chain, known as the Integrated System Solution (ISS), to business partners in the industry. He was able to sell Nagase & Co., Ltd, a company in Japan on the ISS, but they had some concerns regarding the system. Knight truly understood their concerns, and made every effort to ease the process by providing the long-term benefits of the ISS to Nagase & Co., Ltd and other business partners.
According to George Eastman, “business as usual can put you out of business”. (Eastman). Eastman Corporation thrives on visionary methods and was formed on ideas. Eastman Chemical and the e-supply chains main focus is the customer. “Being customer focused, meeting customer needs, serving customer in new ways, convenience for the customer, and delivering customer solutions.” (Eastman). E-commerce offers the customer convenience, security, information and expert help when they want it. Customers can obtain product and technical information and account data. The e-supply chain benefits existing customers but also has the capability to attract new customers.
Eastmans competitive/corporate strategy consists of five components in 2002: “Create value-added growth, improve gross margins, sustain social responsibility, build capabilities for future growth, and maintain financial discipline”. (Annual Report). The e-supply chain formed by Eastman Chemical supported all components of the strategic plan. Their premise was to transform the chemical industry by using the e-supply chain. The strategic plan of the e-supply chain was: “by digitizing business processes it creates new sources of revenue, significant cost reductions and utilizes lower working capital, building transparent and collaborative supply chains, developed a new way to do business and different offering that captures the customer”. (Eastman).
According to Eastmans 2002 Annual Report, it was a strong year for cash flow. The operating activities generated more than $800 million, which more than doubled from 2001s of $397 million. Their sales volume rose eight percent over 2001 with Asia Pacific sales increasing 25 percent due partly to the new agreement with Nagase & Co., Ltd of Japan. Eastman was able to maintain SG&A and R&D expenses to 11 percent of sales with the low cost of overhead due to the e-supply chain. They reduced debt by $350 million and were able to maintain for the third year a strong dividend. Use of the e-supply chain had a positive impact on their business, not only did it improve cash flow, it increased productivities, increased sales volumes and had a positive effect on stock share. The following table gives an overview of financial highlights for 2002.
Operating ResultsSales in dollars$5,320 mil$5,390 mil$5,292 milOperating earnings208 mil(120) mil562 milNet earnings61 mil(175) mil303 milNet earning per share(2.28)Cash dividends per shareCash flows from operating activities801 mil397 mil846 milCapital expenditures427 mil234 mil226 milDepreciation & amortization397 mil435 mil421 milSelling, general & administrative exp407 mil407 mil316 milResearch & development exp159 mil160 mil149 milDrivers of Business Performance Statistics:Sales Volume % ChangeVolume increase in Asia Pacific24.3%Productivity (millions ofkg per employee)Order-to-delivery cycle timeReduced it from 5 to 4 daysImproved data integrity to 0% defectCustomer satisfactionSince 1982 received
Sales of non-distributed systems have increased the number of products it sells, which is not sufficient to carry out its objectives.
As the distribution of distributed system, business is still the fastest growing market for product. As compared to other markets, business is the fastest growing market for product. News
MEXICO – The Mexico government is looking into the possibility of privatising over 20,000 of the country’s public sector-owned telecommunications networks. The government wants to create a “zero-tolerance” policy for the privatization by a range of stakeholders including state and private entities that control the power and control of telecommunications.
The report is based on data gathered from a network of public sector telecoms, the Network Investment Industry Organisation (NIBO), and other sources. It was compiled by journalist and author Gabriel Sánchez, who first exposed the role of telecoms in privatisation from 2009 to 2012.
Mexico City: