DuPont Strategic 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 American-based 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 2010. The company is known for its strong research and

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 peopleGOALS & OBJECTIVES MISSION, everywhere. 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

E. I. DuPont de Nemours & Company

Headquarters

E. I. DuPont de Nemours & Company headquarters is a fourteen-story 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

Operations & Marketing

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

E. I. DuPont de Nemours & Company

Operations & Marketing

The following chart illustrates the stages of the model.

E. I. DuPont de Nemours & Company

Operations & Marketing

E. I. DuPont de Nemours & Company

Operations & Marketing

E. I. DuPont de Nemours & Company

Operations & Marketing

E. I. DuPont de Nemours & Company

Sales by Markets
DuPont 2010 Sales by Markets - Total $32.7 billion

E. I. DuPont de Nemours & Company

Sales by Segments
DuPont 2010 Sales by Segments - Total $32.7 billion

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 Action Plan Lawsuits Settle lawsuits Legal and Reduce minimum environmental charges pollutant wastes Declining market share M&A to increase Low operation margin market share and liquidity 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 in products, services, and brand images 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

BUSINESS STRATEGY

Differentiation Focus

Differentiation

CORPORATE STRATEGY

Growth

Diversification

INTERNATIONAL STRATEGY Merger and acquisitions

Multi-domestic

Join ventures

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 8. Volatile energy and raw materials prices

0.18 0.12 0.15 0.15

3 2 1 2

0.54 0.24 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.

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.

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