Group B5 Emma Jacobsén, Mia Hertzberg, Sergio Montano Axeon study case Question 1: ◦ Thorough analysis ◦ Feasible business idea ◦ Might be too optimistic market potential ◦ Underestimated competition ◦ Ian’s personal benefit

Group B5 Emma Jacobsén, Mia Hertzberg, Sergio Montano Axeon study case Question 2: ◦ Two answers to this question:  Not be beneficial for Axeon to build factory  Probable over estimated market  Longer time than the seven years  Ian forecasted to pay back for the plant and gain profit  Knowledge of the productions is established in the Netherlands  Beneficial for Axeon to build factory  Ian’s calculations are correct  Possible to expand production and sales geographically  More even distribution of sales

Group B5 Emma Jacobsén, Mia Hertzberg, Sergio Montano Axeon study case Question 3: ◦ CEO had objective view of the situation.  Let Ian and the Dutch Operation crew to debate the subject ◦ The CEO must consider what is best for the company. ◦ If the CEO would have interfered  Remove responsibility  Undermine

Group B5 Emma Jacobsén, Mia Hertzberg, Sergio Montano Axeon study case Question 4: ◦ Full-cost transfer prices plus a mark up  20% could be used  Dutch Operation can recover the full cost of production  Easy to implement  A drawback => changes in the market ◦ Reasons why other transfer price methods do not fit this case  Market based transfer prices  Marginal cost transfer prices  Negotiated transfer prices

Group B5 Emma Jacobsén, Mia Hertzberg, Sergio Montano Axeon study case Question 5: ◦ Decentralized top-level management ◦ Result control by bonus plans and rewards  Could lead to that the subsidiary managers only concentrate on their own sales ◦ Expanding by acquiring foreign companies  Expertise  Grasp market

Group B5 Emma Jacobsén, Mia Hertzberg, Sergio Montano Axeon study case Question 6: The critical success factors ◦ Keeping managers after acquisition, geographical expertise. ◦ Subsidiary managers have great influence and responsibility in their own market. ◦ Bonus and reward systems that motivates the top-level management. ◦ R&D of chemical products to be leading in the market. ◦ Personal control in the form of recruiting good engineers and provide them right resources.

Group B5 Emma Jacobsén, Mia Hertzberg, Sergio Montano Axeon study case Question 7: KRA ◦ Production, highly routinized activities e.g. in the production line. ◦ Sales of products. ◦ Recruiting new appropriate personnel for the company standards. ◦ Management such as problem solving, team building, personal development etc. ◦ Training staff to have best possible knowledge and make sure the company’s objectives. ◦ Board meetings to establish the vision and the mission. ◦ R&D to improve current products and develop new ones. ◦ Other KRA that need to be handled are lack of direction, lack of motivation and personal limitations.

Group B5 Emma Jacobsén, Mia Hertzberg, Sergio Montano Axeon study case Question 8: ◦ Decentralized top level management  Subsidiary managers have the ability to make their own decisions  Subsidiary managers have the capability to develop new factories if profitable ◦ Centralized below top level management  Overarching decisions

Group B5 Emma Jacobsén, Mia Hertzberg, Sergio Montano Axeon study case Question 9: ◦ Try out the U.K. market  Exporting AR-42 from the Netherlands  Confirm the demand  This strategy will provide an insight ◦ Train Hollandsworth’s engineers