Opportunities company

The activities and trends discussed in this book represent a wave of change, but more importantly, opportunity. Companies that stand to benefit are those that carefully read the forces at work with an eye toward market creation, and cost as well as differentiation. In the face of growing challenges to business as usual - for example, demands for social and environmental accounting, transparency, and corporate responsibility - the chemical industry has the opportunity to benefit a broader set of stakeholders while better serving the financial interests of stockholders. 

Traditionally, investments in exploration are made many years before there is any opportunity of producing the oil (Fig. 1.2). In such situations companies must have at least one scenario in which the potential rewards from eventual production justify investment in exploration. 

The objective of any exploration venture is to find new volumes of hydrocarbons at a low cost and in a short period of time. Exploration budgets are in direct competition with acquisition opportunities. If a company spends more money finding oil than it would have had to spend buying the equivalent amount in the market place there is little Incentive to continue exploration. Conversely, a company which manages to find new reserves at low cost has a significant competitive edge since it can afford more exploration, find and develop reservoirs more profitably, and can target and develop smaller prospects. 

If the distribution of gas in a country is run by a nationalised or state owned company, there is effectively a monopoly on this service, and prices for gas distributed through a grid system will have to be negotiated with the distribution company. If the market for distribution is not regulated then opportunities arise to sell gas to other customers and... 

It is good practice to reviewa project on completion and record the reasons for departure between planned and actual performance. Where lessons can be learned, or opportunities exploited, they should be incorporated into project management guidelines. Some companies hold post project sessions with their contractors to explore better ways of handling particular issues, especially when there is an expectation of additional shared activities. 

In the above example, the discount rate used was the annual compound interest rate offered by the bank. In business investment opportunities the appropriate discount rate is the cost of capital to the company. This may be calculated in different ways, but should always reflect how much it costs the oil company to borrow the money which it uses to invest in its projects. This may be a weighted average of the cost of the share capital and loan capital of a company. 

If the company is fully self-financing for its new ventures, then the appropriate discount rate would be the rate of return of the alternative investment opportunities (e.g. other projects) since this opportunity is foregone by undertaking the proposed project. This represents the opportunity cost of the capital. It is assumed that the return from the alternative projects is at least equal to the cost of capital to the company (otherwise the alternative projects should not be undertaken). 

It is axiomatic that sales analysis depends on detailed records of sales of a specific chemical to a specific company. Paramount to the success of such studies is the existence of data recorded on a systematic and continuous basis. It follows that these studies are done best by an ia-house staff on products already produced by the company. However, on occasion, a product new to the company can be studied by the ia-house group with the assistance of their field sales force. For example, a producer of polypropylene could use its people to secure data on the consumption of other thermoplastics by their customers. Such an exercise might identify opportunities for a new producer, but a more detailed marketing research study would probably be done before entry iato the new product area was made. 

Protocol problems may exist for market researchers in a company. Often company poHcy dictates that any call on a customer requires the agreement of the sales department and the presence of a sales representative at the actual meeting. Similarly, if calls are to be made on suppHers, purchasing department approval and attendance are often necessary. These rules can delay or lessen opportunities for a useful dialogue but their existence must be recognized and coped with in the field. 

The resulting discoveries may provide a broad range of solutions or products. For example, invention may result from basic research and development efforts directed toward products which ate essential to basic commercial efforts. Alternatively, invention may result in products or appHcations which add value to basic commercial products that ate already in existence. Inventions may also be used to assist an individual or company in commercial efforts toward developing a defensive posture in any given marketplace. When patented, appHcations may also provide an extended opportunity to Hcense or market the patent without the actual production of a product by the inventor. 

Medical Programs. Large chemical plants have at least one hill-time physician who is at the plant five days a week and on call at all other times. Smaller plants either have part-time physicians or take injured employees to a nearby hospital or clinic by arrangement with the company compensation-insurance carrier. When part-time physicians or outside medical services are used, there is Httle opportunity for medical personnel to become familiar with plant operations or to assist in improving the health aspects of plant work. Therefore, it is essential that chemical-ha2ards manuals and procedures, which highlight symptoms and methods of treatment, be developed. A hill-time industrial physician should devote a substantial amount of time to becoming familiar with the plant, its processes, and the materials employed. Such education enables the physician to be better prepared to treat injuries and illnesses and to advise on preventive measures. 

J. Shepherd, paper presented to the Aquaculture Feed and Veterinary Products Worldwide Business Opportunities forFeed, Pharmaceutical, and Chemical Companies Conference, Stamford, Coim., June 6—8, 1990. 

During the 1980s some rationalization of capacity occurred in the United States reducing the number of producers to four with the purchase of NeveiUe s chloriaated paraffin business by Dover (ICC). In Europe, Dynamit Nobel ceased as a suppHer. However, elsewhere new companies have commenced manufacture to take advantage of the opportunities in new and emerging economies, particularly in Asia. Some suppHers of chloriaated paraffins are Hsted in Table 2. 

It is also the responsibihty of management to estimate the probabilities for the success of individual projects after due consideration of all the data provided by the various departments. The rate of return on investment that is acceptable to management is a function of these responsibihties. Each industry has a reasonably well defined return on investment that reflects the degree of risk inherent in that industry. If management decisions are faulty, the company either will overspend or will miss opportunities. 

Finally, pollutiou-preveutiou measures can provide a company with the opportunity of looking their neighbors in the eye and truthfully saying that all that can reasonably Be done to prevent pollution is being done. In effect, the company is doing right by the environment. Is there an economic advantage to this It is not only a difficult question to answer quantitatively but also a difficult one to answer quahta-tively. The reader is left to ponder the answer to this question. 

Lost opportunities - This category of quality cost is impossible to quantify accurately. It refers to the rejection of a company product due to a history of poor quality and service, hence the company is not invited to bid for future contracts because of a damaged reputation. 

The use of CA has proved to be beneficial for companies introducing a new product, when an opportunity exists to use new processes/technologies or when design rules are not widely known. Design conformance problems can be systematically addressed, with potential benefits, including reduced failure costs, shorter product development times and improved supplier dialogue. A number of detailed case studies are used to demonstrate its application at many different levels. 

Does your company have a deliberate organized program that focuses on P2 opportunities If not, then why not If yes, what motivated top management to put it in place ... 

Does your company have regular meetings or task forces that focus on P2 opportunities Have these meetings or task forces ever been tried before, and what kind of success did they have ... 

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