This paper has being able to analysis the corporate business operations of Akzo Nobel taking an incisive look into its strategies for gaining competitive advantage.
The generic environments in which Akzo Nobel operates from, such as the economic, political, technological, sociological and competitive environments have impacted in the choice of strategy adopted by the business.
Giving the level of competition in the industry where Akzo Nobel operates, to maintain market lead it has operated a generic strategy that has to do with cost effectiveness. Akzo Nobel has severally utilized mergers and acquisitions to gain economic advantage.
The paper also shows strategic and economic implementation by Akzo Nobel through different adopted strategic framework. Recommendations were made for ways to further strengthen the company’s operations through its adopted strategies.
Akzo Nobel organization is a world leading organization with well established companies that controls its business operations, in the different areas it operates in. the organization is a diversified, multicultural and truly global organization with activities in pharma -products, coatings and chemical.
The Akzo Nobel organization was founded in 1911, and has its headquarters in Arnhem, Netherlands. With its operational divisions, the organization over many decades have operated in four major divisions, these are in human healthcare products, animal healthcare products, coatings and panting, and chemical products.
The organization in each of its segmental operations has been a global leader and a household name to be reckoned with. According to Narula & Hoesel, (1999:44), “Among the chemical enterprises AKZO (today AKZO NOBEL) is probably the best known of the Dutch multinationals.
In its human healthcare division, Akzo Nobel operates as a technology-based company, which provides healthcare products through its extensive research, development, manufacture, sale, and service of human health products. In its animal healthcare products, the organization engages in prescription of medicines, veterinary products and active pharmaceutical ingredients.
In the organization’s healthcare products, its human healthcare products are handled by its Organon Company. This was integrated with Diosynth in 2005 for effective operation. The animal healthcare products are handled by the Intervet Company. The Intervet business is the third largest animal health company in the world (Walker, 2004). The Akzon Nobel organization in its Pharma division has utilized both its Organon and Intervet Company’s expertise and know-how, using their technical, regulatory and product development capacities in carrying out its vaccine and other pharmaceutical activities.
For example in 2002, the organization through its Nobilon Company develops and manufactured human vaccines on a global scale. The Akzo Nobel coating segment produces paints, finishes, stains, and synthetic resins for industrial applications, professional painters, and the do-it-yourself sector. Its’ product area includes decorative/ architectural paint, car refinishes, liquid and power coatings for industrial use, marine and yacht coatings, protective coatings, aerospace coatings, and industrial and consumer adhesives (ibid).
The third area of operation for Akzo Nobel is the chemical segment. This is made up of a mix of specialty, functional, and commonality chemical based on the production of certain segments in the chemical industry. Its products consist of pulp bleaching chemicals; specialty resins; surfactants and fatty acids; water treatment chemicals; chlorine and caustic soda; polymerization catalysts; and salt for electrolysis; other chemical industries; food applications; and consumer use (ibid).
The Akzo Nobel organization is made up of 500 companies which are listed on both the Euronext Amsterdam and NASDAQ stock exchanges. The organization primarily operates in Europe, North America, Latin America, Asia, the Middle East, and Africa. It has a workforce of around 61,500 people and a subdivision of its business in 13 business units, with operating subsidiaries in more than 80 countries (ibid).
Strategic Social And Economic Analysis
The SWOT analysis is a veritable tool to be used in analysing the Akzo Nobel strategic social and economic analysis.