1. PEST Analysis Carrie Keller

2. Ashland Consumer Markets- Valvoline Business to Consumer Division

3. Political- Business to Consumer Strict environmental laws throughout Europe. Laws are especially strict within Germany, Sweden and Finland. The EU has a waste oil collection rate of about 80%.

4. Economic- Business to Consumer Shrinking car market in Europe. Fewer personal cars results in decreased need for maintenance and oil. Poor economy in Europe. Fluctuations in value between the Euro and the United States Dollar. The chart at left shows the ever changing exchange rate between the EUR and the USD over the last ten months.

5. Social- Business to Consumer Attitudes toward the environment in Europe. Environmental protectionism in Europe. Attitudes toward the necessity of personal automobiles as opposed to public transportation. Changing perceptions about the frequency of oil change necessity.

6. Technological- Business to Consumer  Increasing popularity of synthetic oil product.  Consumer can change their own oil.

7. Ashland Specialty Ingredients, Water technologies and Performance Materials Business to Business Division

8. Political- Ashland Specialty Ingredients  Potential legal issues due to the nature of the products. Foods consumed by humans could create legal risk.  Strict laws in the European Union about food additives.

9. Economic- Ashland Specialty Ingredients  The varying exchange rate between the Euro and the United States Dollar.  Poor economy in Europe.

10. Social- Ashland Specialty Ingredients  Negative perception of food additives.  Trend toward more natural foods.  Health conscious Europeans leaning toward unprocessed and organic foods.

11. Technological- Ashland Specialty Ingredients  Consumer demand for products that will not be harmful to their health.

12. Political / Legal- Ashland Water Technologies  Strict environmental regulations relating to papermaking and factories.  Legal issues regarding potential pollution.

13. Economic- Ashland Water Technologies  Shift toward recycled paper products.  Poor economy in Europe.  Fluctuation between the Euro and the United States Dollar.

14. Social- Ashland Water Technologies  Increasing awareness and social pressure to be ‘green’.  Recycling is the norm in Europe.  Increase of availability of recycled materials.  Increased awareness of the type of packaging a food item is in.

15. Technological- Ashland Water Technologies  Food production techniques are constantly changing.  Changing technology of paper recycling toward a more environmentally friendly approach.

16. Political- Ashland Performance Materials  Environmental concerns. Pollution.  Chemicals used in building materials being linked to diseases like autism.

17. Economic- Ashland Performance Materials  Poor economy in Europe causing construction to lag.  Changing exchange rate between the Euro and the United States Dollar.

18. Social- Ashland Performance Materials  Increased awareness of chemicals in construction materials and their potential health risks.

19. Technological- Ashland Performance Materials  Consumer demand for safe yet effective products within their homes and businesses.

20. PEST Analysis FactorTrendEvaluatio n Impact (1=low, 5=high ) Rank Political1. Strict environmental laws in Europe. 2. Strict food additive laws in Europe. 1.Threat 2.Threat 44444

21. PEST Analysis FactorTrendEvaluationImpact (1=low, 5=high) Rank Economic1.Economy lagging in Europe 2.Currency exchange rate between the EUR and the USD. 1.Threat 2.Opportunity 3333 3

22. PEST Analysis FactorTrendEvaluationImpact (1=low, 5=high) Rank Social1.Consumer awareness of chemicals and additives in their foods. 2. Consumer awareness of the effects of chemicals in building supplies 3.Environmental protectionism. 1.Threat 2.Threat 3.Threat 555555 5

23. PEST Analysis FactorTrendEvaluationImpact (1=low, 5=high) Rank Technological1. Consumer demand for safe, effective products that are not harmful to the environment 1.Opportunity44

24. Conclusions:  The major opportunity for my company appears to be the changing technology of food additives, chemical compounds and increasing awareness of environmental issues. By continually changing, my company can gain a competitive edge.

25. Conclusions:  The major threat to my company would be the poor economy in Europe.  Another threat that is also an opportunity is the increasing consumer demand for more earth friendly products.