Value creation: strategies for the chemical industry/ edited by McKinsey & Company, F. Budde and others.

Description based upon print version of record.
Includes bibliographical references and index.

Preface XVII Acknowledgements XIX List of Contributors XXI 1 Today's Chemical Industry: Which Way Is Up? 1Karsten Hofmann and Florian Budde 1.1 The Chemical Industry Today - A Snapshot 1 1.2 Eras of the Chemical Industry 7 1.3 Summary 10 2 Shareholder Value Orientation: Not a Question of Whether, but How 11Bernd Heinemann and Thomas Augat 2.1 Capital Market Deviations as the Key Challenge for Shareholder Value Orientation 11 2.2 How Capital Markets Reflect Fundamental Value Creation 13 2.3 New Tools for an Advanced Shareholder Value Orientation 19 2.4 Summary 26 3 Structural Drivers of Value Creation in the Chemical Industry 27Eric Bartels, Thomas Augat, and Florian Budde 3.1 Introduction to the Study 27 3.2 Mobility in a Mature Industry 28 3.3 What Drives Performance? 30 3.4 A Closer Look at Value Creation in the Segments 33 3.5 Summary 38 4 Chemicals - Driving Innovation in Other Industries 41Thomas Schreckenbach and Werner Becker 4.1 Liquid Crystals: Superlative, Not Superfluous 42 4.2 Outlook 51 4.3 Summary 52 5 Today's Challenges and Strategic Choices 53Florian Budde, Utz-Hellmuth Felcht, and Heiner Frankemoelle 5.1 Overall Outlook Stable 54 5.2 The Value Kaleidoscope 55 5.3 What Happens Next? 59 5.4 Summary 61 6 An Approach to Determining the Long-term Attractiveness of Commodity Chemical Businesses 63Scott Andre, Sunil Sanghvi, and Thomas Roethel 6.1 Looking beyond Cyclicality 64 6.2 Putting the Model to Work 71 6.3 The Example of Ethylene 73 6.4 Tailoring the Model 75 6.5 Conclusion 76 6.6 Summary 76 7 Middle East: Opportunities and Challenges from the Rapid Emergence of a Global Petrochemical Hub 79Christophe de Mahieu, Christian Gunther, and Jens Riese 7.1 Turning to the East 79 7.2 Pathways to Growth for the Middle East 85 7.3 Way Forward for the West 89 7.4 Capturing the Value 90 7.5 Conclusion 92 7.6 Summary 93 8 Survival when It's Hard to be Special: A Perspective on Specialty Chemicals 95Eric Bartels, Joel Claret, Sabine Deppe, and Ralph Marquardt 8.1 Performance Has Been Disappointing 95 8.2 The Market Is Not Getting Any Easier 99 8.3 Meeting the Challenge - Five Key Levers to Pull 102 8.4 Summary 108 9 Creating the World's Leading Specialty Chemicals Company 109Utz-Hellmuth Felcht 9.1 The Portfolio: "Creating the World's Leading Specialty Chemicals Company" 109 9.2 Organization: "as Decentralized as Possible, as Centralized as Necessary" 113 9.3 A United Corporate Culture: "Blue Spirit" 117 9.4 New Challenges and the Next Transformation Goals 120 9.5 Conclusion 124 9.6 Summary 125 10 Prospects for Agribusiness: an Essential Contribution to Global Food Demand 127Michael Pragnell and Robert Berendes 10.1 The Rationale of Agribusiness 128 10.2 Three Eras of Agribusiness 130 10.3 Driving Plant Yield 132 10.4 Opportunities beyond Yield 134 10.5 Summary 134 11 Industrial Gases - Growth by Continued Self-Renewal 137Aldo Belloni and Lennart Selander 11.1 HThe Invisible Industry': Stability and Profitability 137 11.2 One Hundred Years of Success: the Winning Ingredients 141 11.3 Fit for the Future: Ready to Meet the Challenges 143 11.4 Summary 148 12 Perspectives of Chemical Distributors as Partners of Industry 149Klaus Engel and Gabriele Roolfs-Broihan 12.1 From Wholesaling to Supply Chain Management: the Evolution of Chemical Distribution 150 12.2 An Industry on the Move - the Major Trends 152 12.3 Perspectives Within Changing Environments 153 12.4 The Future Outlook 157 12.5 Summary 158 13 Systematically Revitalizing Innovation in the Chemical Industry 159Birgit Koenig, Gary Farha, and Thomas Weskamp 13.1 Drivers of Innovation 160 13.2 How to Organize for Innovation 170 13.3 Summary 172 14 Innovation for Growth 173Thomas M. Connelly 14.1 The Ever-Present Challenges for the Innovation Process 173 14.2 Three Lessons Guide Us 177 14.3 What Will the Future Bring? 183 14.4 Summary 184 15 The Four Pillars of Sustainable Purchasing Transformations 185Helge Jordan, Nicolas Reinecke, and Khosro Ezaz-Nikpay 15.1 Designing a Performance Transformation Program 186 15.2 Initiate and Anchor Behavioral Change in the Organization 188 15.3 Generate Impact through a Proven Value Creation Process 191 15.4 Create a Tailor-made Performance Measurement and Management System 196 15.5 Summary 199 16 Feedstock Price Volatility and How to Deal with It 201Scott Andre and Sunil Sanghvi 16.1 What is Driving Feedstock Price Increases and Volatility? 201 16.2 A Brave New World of Feedstock 206 16.3 Meeting the Challenge of Feedstock Volatility 209 16.4 Conclusion 213 16.5 Summary 213 17 Taking a Leap in Purchasing 215Gregory Nelson 17.1 Maximizing Value Creation 215 17.2 Creating Sustainable Value for the Business 219 17.3 The Next Horizon 224 17.4 Summary 225 18 Excellence in Operations - the Never-ending Journey Continues 227Leonhard Birnbaum 18.1 Operational Improvement - the Bar Is Rising 227 18.2 Making Lean Operations Happen in Chemicals 230 18.3 Summary 239 19 State-of-the-art Production Concepts in the Chemical Industry 241Uwe Nickel 19.1 Operating in a Transformed Environment 242 19.2 Challenges and Responses 246 19.3 Outlook 256 19.4 Summary 256 20 The Role of Site Services and Infrastructure for Productivity Management 257Alejandro Alcalde Rasch 20.1 Site Services and Infrastructure: an Important Driver of Manufacturing Productivity 257 20.2 Transition: Site Services and Infrastructure's Coming of Age 258 20.3 Going Forward: Increasing Site Services and Infrastructure's Competitiveness 262 20.4 Summary 267 21 Creating a Revenue Advantage through Sales and Marketing Excellence 269John Warner, Joel Claret, Ralph Marquardt, and Eric Roegner 21.1 Defining World Class 270 21.2 Building World Class Revenue Capability 275 21.3 Summary 279 22 Achieving Top Performance in Supply Chain Management 281Andrea Cappello, Martin Loesch, and Christoph Schmitz 22.1 Supply Chain Management as a Strategic Lever for the Chemical Industry 281 22.2 Key Supply Chain Management Elements and Opportunities for the Chemical Industry 283 22.3 Delivering on the Opportunities - the Key Success Factors for Achieving Top Performance 290 22.4 Conclusion 295 22.5 Summary 295 23 Right Second Time - Unlocking Value with IT 297Peter Peters 23.1 Breaking the Barrier 297 23.2 World Class IT Infrastructure Management 299 23.3 ERP Harmonization as the Basis for Global Process Architectures 302 23.4 Making CRM Work to Create Profitable Growth 305 23.5 Key Success Factors for the Journey 308 23.6 Summary 309 24 Managing Organizational Performance 311Karsten Hofmann and Heiner Frankemoelle 24.1 Supporting Strategy by Structure 312 24.2 Understanding the Performance Challenge 315 24.3 Making Organizational Change Happen 318 24.4 Summary 325 25 Post-Merger Management: it's All in the Design 327Eric Bartels, Tomas Koch, and Philip Eykerman 25.1 Phases of an Integration 328 25.2 Defining and Communicating the Aspirations 330 25.3 Fully Identifying Value Creation Potential 330 25.4 Determining the Cornerstones of an Effective Organization 335 25.5 Tailoring the Integration Approach 338 25.6 Summary 341 26 M&A - the UCB Case 343Georges Jacobs 26.1 A Brief History of UCB - Eight Decades of Mergers, Acquisitions, and Divestments 344 26.2 The Formation of Surface Specialties - A Three-way Integration 346 26.3 The Integration of UCB Pharma and Celltech 353 26.4 Key Learnings 356 26.5 Summary 357 27 The Chemical Industry and Public Perception 359Wilfried Sahm 27.1 Public Perception of the Chemical Industry - its Structure and Significance 359 27.2 Image and Acceptance in Germany 362 27.3 Creating Awareness and Acceptance through Communication 369 27.4 Current Challenges 371 27.5 Summary 373 28 Industrial Biotech: From Promise to Profit 375Rolf Bachmann and Jens Riese 28.1 Time to Exploit the Potential 375 28.2 Waste Biomass - a Feedstock with Mass Appeal 379 28.3 Turning the Promise into Profit 381 28.4 Capturing the Value - How it is Done in Practice 383 28.5 Finding the Right Answer 387 28.6 Summary 388 29 Industrial Biotech at DSM: From Concept to Customer 389Colja Laane and Feike Sijbesma 29.1 From Petro to Bio 389 29.2 From Principle to Product 390 29.3 From Specialties to Commodities 398 29.4 From Innovation to Impact 399 29.5 Summary 401 30 Leveraged Buyout Transactions - Challenges and Learnings 403Achim Berg, Florian Budde, and Bernd Heinemann 30.1 Chemical Sector LBOs Show No Sign of Abating 403 30.2 Understanding Value Generation in Chemical Buyouts 407 30.3 Learnings for the Chemical Industry 410 30.4 Learnings for Buyout Firms 411 30.5 Summary 415 31 What Attracts Private Equity Firms to the Chemical Industry? 417Thomas Jetter 31.1 Chemical Industry Restructuring 418 31.2 Private Equity Transactions in Chemicals - Success Stories, Mostly 419 31.3 The Value Drivers of Private Equity Investments 420 31.4 Summary 425 32 Facing China 427Soenke Bastlein, Ralf Dingeldein, Tomas Koch, and Karsten Neuffer 32.1 China Is No Longer HOptional' 428 32.2 Most Chemical Companies Are Not up to Speed 430 32.3 The Lessons of Confucius 433 32.4 Summary 440 33 China - Key for Success in Asia 441Jurgen Hambrecht 33.1 Why China? 441 33.2 BASF and its Long Relationship with China 442 33.3 Sustainable Development in China 447 33.4 Outlook 448 33.5 Summary 449 Index 451