Strategies for Value Creation

Copyright 2001 Wiley-VCH Verlag GmbH ISBNs 3-527-30251-4 (Softcover) 3-527-60031-0 (Electronic) 

Florian Budde, Brian Elliott, Cary A. Farha, Heiner Frankemolle, Tomas Koch, and Rodgers Palmer 

SKW Trostberg, or TotalFina and Elf Aquitaine, or the Dow Chemical/Union Carbide deal) has only changed the pattern slightly and the same companies have held the top ranks in the industry for well over ten years. 

This development resulted in a relatively satisfactory stock performance in comparison with other basic materials industries such as steel and, in general, was more or less in line with the market as a whole until the mid 1990s (Fig. 3.3). The Asian crisis, however, proved quite a setback - wiping an estimated USD 25 billion off the industry s economic profit (return on invested capital minus WACC times invested capital) for Asian companies alone. The recovery of the Asian markets saw no matching improvement in the perception of the chemical industry by 

Aslan crisis destroyed -USD 25 billion of annual economic profit 

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Shareholder value In this most recent phase the main focus is on financial returns, that is on the value created for investors. M A activity in the industry is widespread but disaggregation is also a feature of the corporate landscape as more and more firms choose to focus on a smaller number of fields. The need for value creation imposed by capital markets is forcing Western chemical players to take action, which is sometimes quite painful. They have had to fundamentally rethink their strategies and ways of doing business. In particular, the process of building new businesses outside the traditional scope of activities has provided an opportunity to crack the growth challenge (see also Chapter 3). 

Rodrigues C, Hulten B, Brito C (2011) Sensorial brand strategies for value co-creation. Innovative Mark 7(2) 40-47... 

Such values are of importance for creation of optimization models and separate emission reduction strategies for both sulfur and nitrogen. When both species must be reduced, the approach described in Chapters 4 and 17 is used. 

CV or bootstrap is used to split the data set into different calibration sets and test sets. A calibration set is used as described above to create an optimized model and this is applied to the corresponding test set. All objects are principally used in training set, validation set, and test set however, an object is never simultaneously used for model creation and for test. This strategy (double CV or double bootstrap or a combination of CV and bootstrap) is applicable to a relatively small number of objects furthermore, the process can be repeated many times with different random splits resulting in a high number of test-set-predicted values (Section 4.2.5). 

Bartels E, Claret J, Deppe S, Marquardt R (2006) Survival when It s Hard to be Special A Perspective on Specialty Chemicals. In Budde F, Felcht U-H, Frankemolle H (eds) Value Creation Strategies for the Chemical Industry, 2nd edn. Wiley-VCH, Weinheim, pp 95-108... 

Value Creation Strategies for the Chemical Industry. 2nd Edition. F. Budde, U.-H. Felcht, H. Frankemolle (Eds.) Copyright 2006 WILEY-VCH Verlag GmbH Co. KGaA, Weinheim ISBN 3-527-31266-8... 

Additionally, if there were significant discrepancies between fundamental value creation and its capital market assessment as reflected in stock prices, it would be impossible in many cases to actually initiate or sustain a strategy perceived to increase fundamental value, because, for example, the necessary financing would not be available. 

Butler, Paul, Samdani, G. Sam, McNish, Rob. The Alchemy of Leveraged Buyouts. In Budde F., Farha G.A., Frankemolle H., Hoffmeister D.F, Kramer K. (Eds.), Value Creation Strategies for the Chemical Industry. Pp. 93-107. Weinheim, Germany Wiley-VCH Verlag. 2001. 

The first edition of Value Creation - Strategies for the Chemical Industry was very well received. The effort required to compile a book on modern management approaches especially for chemical companies had been quite daunting however, we were extremely gratified to receive positive feedback from many in the industry. After much deliberation, this response also decided us to publish a second and completely revised edition. 

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