Dalian Bio-Chem Co. Ltd. (Bio-Chem) had been deeply involved in the field of industrial fungicides for nearly twenty years and occupied a place in both domestic and overseas markets. Since its establishment in 2003, Bio-Chem had adhered to a strategy of centralization, with industrial fungicides as its main business products. Bio-Chem was successfully listed on the A-share market in China in 2012, and it grew rapidly in the ten years that followed. Although Bio-Chem had become a leader in the field of industrial fungicides, its chairman believed that companies should not be content with the status quo. Some within the company believed Bio-Chem should carry out a diversification strategy because it had sufficient funds to do so; others thought it should carry out an integrated strategy because the downstream industry was very profitable; and others thought it should stick to a centralized strategy because the market demand for industrial fungicides was still very large, and adhering to a centralization strategy meant there would be room for growth. The chairman had to consider the opportunities and challenges of each strategy and determine which direction to take the company.
百傲化学:是时候偏离集中化的道路了? Bio-Chem: Time to Veer Off the Path of Centralization? (Simplified Chinese version)
Haifen Lin, Mengyang Liu
Product #:W33783
Supplier:Ivey
Discipline:Management Science, Strategy
Setting:China, 2021
Industries:
Your Price:$10.54
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Learning Objectives
- 理解并解释集中化战略、多元化战略和整合战略。
- 确认并分析企业实施集中化战略所面临的内部和外部环境。
- 了解企业的动机以及在实施特定战略时可能面临的困难。
- 了解集中战略、多元化战略和整合战略分别适用于企业的条件。
This case is suitable for undergraduate- and graduate-level courses on strategic management. It can be used to illustrate and discuss how to determine strategy according to the internal and external environment of an enterprise, the basic types of centralization strategy, and a cost analysis and potential value analysis for a development strategy. After working through the case and assignment questions, students will be able to do the following:
- Understand and explain centralization strategy, diversification strategy, and integration strategy.
- Identify and analyze the internal and external environment the enterprise faces in carrying out a centralization strategy.
- Understand the motives of the enterprise and possible difficulties it faces in carrying out a particular strategy.
- Understand the conditions under which a centralization strategy, a diversification strategy, and an integration strategy is each suitable for an enterprise.